OLTP (Online Transaction Processing)

Online Transaction Processing, or OLTP, is a system designed to manage and process high volumes of transactions in real-time. It’s the backbone of many business operations such as retail sales, banking, and online booking systems. Picture a busy supermarket checkout—each swipe of an item is like a transaction in OLTP. These systems are optimized to handle many users and quick operations, ensuring a smooth and efficient experience.

In business intelligence, OLTP systems are where the action happens. They’re the point of contact for day-to-day business transactions, constantly collecting valuable data from each interaction. While OLTP is about speed and efficiency in processing individual transactions, the data gathered forms the foundation for analysis that will be performed later to uncover trends and insights about the business.

Understanding OLTP is important because it’s not just about storing data—it’s about keeping the business running smoothly, with a continuous inflow of real-time data that reflects the latest state of business operations. This data then feeds into OLAP (Online Analytical Processing) systems to help businesses plan and make decisions based on the most current and detailed information available.