What is OLAP?

In recent years, we have experienced an explosion of data, and the challenge as we enter this new decade is how to process, categorize and display all of this information. OLAP is an acronym that stands for On-Line Analytical Processing that aids us in this endeavor. It is a group of software tools that provide multidimensional data analysis. OLAP systems are highly interactive and aim to provide the user with a category of applications that collect, manage, process and visualize multidimensional data that is traditionally seen in a relational databases. There are a number of distinguishing characteristics of OLAP systems

• Speed: OLAP systems are able to deliver most responses to the user in a timely fashion.

• Analysis: OLAP systems are capable of managing and evaluating information that are common in business areas that deal with logic and statistical analysis. It also usually allows the users to define new calculations as part for analysis or report generation.

• Security: This is necesary because OLAP is used in environments where confidentiality is a necessity. OLAP systems are able to implement all security requirements necessary to maintain compatibility with the system.

Applications

OLAP Systems are used in various areas including the following:

• Financial Industry
• Forecasting and Risk Assessment
• Sales and Marketing
• Budgeting and Management