OLAP

Qn: What is OLAP (Online Analytical

Processing)?

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 WHAT IS OLAP?
• OLAP stands for On-Line Analytical
Processing.
• OLAP is a classification of software technology
which authorizes analysts, managers, and
executives to gain insight into information
through fast, consistent, interactive access in a
wide variety of possible views of data that has
been transformed from raw information to
reflect the real dimensionality of the
enterprise as understood by the clients. 2
• OLAP implement the multidimensional analysis of
business information and support the capability for
complex estimations, trend analysis, and
sophisticated data modeling.
• It is rapidly enhancing the essential foundation for
Intelligent Solutions containing Business Performance
Management, Planning, Budgeting, Forecasting,
Financial Documenting, Analysis, Simulation-Models,
Knowledge Discovery, and Data Warehouses
Reporting.
• OLAP enables end-clients to perform ad hoc analysis
of record in multiple dimensions, providing the
insight and understanding they require for better
decision making. 3
 Who uses OLAP and Why?

• OLAP applications are used by a variety of the

functions of an organization.
1. Finance and accounting:
 Budgeting
 Activity-based costing
 Financial performance analysis
 And financial modeling

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2. Sales and Marketing
 Sales analysis and forecasting
 Market research analysis
 Promotion analysis
 Customer analysis
 Market and customer segmentation

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3. Production
 Production planning
 Defect analysis

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• OLAP cubes have two main purposes.
The first is to provide business users with a
data model more intuitive to them than a
tabular model. This model is called a
Dimensional Model.
The second purpose is to enable fast query
response that is usually difficult to achieve
using tabular models.

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 How OLAP Works?

• Fundamentally, OLAP has a very simple concept. It

pre-calculates most of the queries that are
typically very hard to execute over tabular
databases, namely aggregation, joining, and
grouping.
• These queries are calculated during a process that is
usually called 'building' or 'processing' of the OLAP
cube.
• This process happens overnight, and by the time
end users get to work - data will have been updated
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 OLAP Guidelines (Dr.E.F.Codd Rule)

• Dr E.F. Codd, the "father" of the relational

model, has formulated a list of 12 guidelines
and requirements as the basis for selecting
OLAP systems:

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12 guidelines and requirements as the basis for selecting OLAP
systems:

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• 1) Multidimensional Conceptual View: This is the
central features of an OLAP system. By needing a
multidimensional view, it is possible to carry out
methods like slice and dice.
• 2) Transparency: Make the technology, underlying
information repository, computing operations, and
the dissimilar nature of source data totally
transparent to users. Such transparency helps to
improve the efficiency and productivity of the
users.
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• 3) Accessibility: It provides access only to the
data that is actually required to perform the
particular analysis, present a single, coherent,
and consistent view to the clients.
• The OLAP system must map its own logical
schema to the heterogeneous physical data
stores and perform any necessary
transformations. The OLAP operations should
be sitting between data sources (e.g., data
warehouses) and an OLAP front-end.

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• 4) Consistent Reporting Performance: To make
sure that the users do not feel any significant
degradation in documenting performance as
the number of dimensions or the size of the
database increases. That is, the performance of
OLAP should not suffer as the number of
dimensions is increased. Users must observe
consistent run time, response time, or machine
utilization every time a given query is run.
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• 5) Client/Server Architecture: Make the
server component of OLAP tools sufficiently
intelligent that the various clients to be
attached with a minimum of effort and
integration programming.
• The server should be capable of mapping and
consolidating data between dissimilar
databases.

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• 6) Generic Dimensionality: An OLAP method
should treat each dimension as equivalent in
both is structure and operational capabilities.
Additional operational capabilities may be
allowed to selected dimensions, but such
additional tasks should be grantable to any
dimension.

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• 7) Dynamic Sparse Matrix Handling: To adapt
the physical schema to the specific analytical
model being created and loaded that
optimizes sparse matrix handling.
• When encountering the sparse matrix, the
system must be easy to dynamically assume
the distribution of the information and adjust
the storage and access to obtain and maintain
a consistent level of performance.

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• 8) Multiuser Support: OLAP tools must provide concurrent
data access, data integrity, and access security.
• 9) Unrestricted cross-dimensional Operations: It provides
the ability for the methods to identify dimensional order
and necessarily functions roll-up and drill-down methods
within a dimension or across the dimension.
• 10) Intuitive Data Manipulation: Data Manipulation
fundamental the consolidation direction like as
reorientation (pivoting), drill-down and roll-up, and
another manipulation to be accomplished naturally and
precisely via point-and-click and drag and drop methods
on the cells of the scientific model. It avoids the use of a
menu or multiple trips to a user interface.

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• 11) Flexible Reporting: It implements efficiency to
the business clients to organize columns, rows, and
cells in a manner that facilitates simple
manipulation, analysis, and synthesis of data.
• 12) Unlimited Dimensions and Aggregation
Levels: The number of data dimensions should be
unlimited. Each of these common dimensions must
allow a practically unlimited number of customer-
defined aggregation levels within any given
consolidation path.
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Characteristics of OLAP

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• Fast
• It defines which the system targeted to deliver
the most feedback to the client within about
five seconds, with the elementary analysis
taking no more than one second and very few
taking more than 20 seconds.

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• Analysis
• It defines which the method can cope with any business logic and
statistical analysis that is relevant for the function and the user,
keep it easy enough for the target client.
• Although some preprogramming may be needed we do not think
it acceptable if all application definitions have to be allow the user
to define new Adhoc calculations as part of the analysis and to
document on the data in any desired method, without having to
program so we excludes products (like Oracle Discoverer) that do
not allow the user to define new Adhoc calculation as part of the
analysis and to document on the data in any desired product that
do not allow adequate end user-oriented calculation flexibility.

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• Share
• It defines which the system tools all the
security requirements for understanding and, if
multiple write connection is needed,
concurrent update location at an appropriated
level, not all functions need customer to write
data back, but for the increasing number which
does, the system should be able to manage
multiple updates in a timely, secure manner.
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• Multidimensional
• This is the basic requirement. OLAP system
must provide a multidimensional conceptual
view of the data, including full support for
hierarchies, as this is certainly the most logical
method to analyze business and organizations.

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• Information
• The system should be able to hold all the data
needed by the applications. Data sparsity
should be handled in an efficient manner.

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The main characteristics of OLAP are as follows:

1. Multidimensional conceptual view: OLAP systems let

business users have a dimensional and logical view of the
data in the data warehouse. It helps in carrying slice and
dice operations.
2. Multi-User Support: Since the OLAP techniques are shared,
the OLAP operation should provide normal database
operations, containing retrieval, update, adequacy control,
integrity, and security.
3. Accessibility: OLAP acts as a mediator between data
warehouses and front-end. The OLAP operations should be
sitting between data sources (e.g., data warehouses) and an
OLAP front-end.
4. Storing OLAP results: OLAP results are kept separate from
data sources. 25
6. Uniform documenting performance: Increasing the
number of dimensions or database size should not
significantly degrade the reporting performance of the
OLAP system.
7. OLAP provides for distinguishing between zero values
and missing values so that aggregates are computed
correctly.
8. OLAP system should ignore all missing values and
compute correct aggregate values.
9. OLAP facilitate interactive query and complex analysis
for the users.
10. OLAP allows users to drill down for greater details or
roll up for aggregations of metrics along a single business
dimension or across multiple dimension. 26
11. OLAP provides the ability to perform
intricate calculations and comparisons.
12. OLAP presents results in a number of
meaningful ways, including charts and graphs.

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 Benefits of OLAP
OLAP holds several benefits for businesses: -
1. OLAP helps managers in decision-making through the
multidimensional record views that it is efficient in
providing, thus increasing their productivity.
2. OLAP functions are self-sufficient owing to the inherent
flexibility support to the organized databases.
3. It facilitates simulation of business models and
problems, through extensive management of analysis-
capabilities.
4. In conjunction with data warehouse, OLAP can be used
to support a reduction in the application backlog,
faster data retrieval, and reduction in query drag.
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 Motivations for using OLAP
1. Understanding and improving sales: For enterprises
that have much products and benefit a number of
channels for selling the product, OLAP can help in finding
the most suitable products and the most famous
channels. In some methods, it may be feasible to find the
most profitable users.
• For example, considering the telecommunication
industry and considering only one product,
communication minutes, there is a high amount of
record if a company want to analyze the sales of
products for every hour of the day (24 hours), difference
between weekdays and weekends (2 values) and split
regions to which calls are made into 50 region. 29
• 2) Understanding and decreasing costs of doing
business: Improving sales is one method of improving a
business, the other method is to analyze cost and to
control them as much as suitable without affecting sales.
• OLAP can assist in analyzing the costs related to sales. In
some methods, it may also be feasible to identify
expenditures which produce a high return on
investments (ROI).
• For example, recruiting a top salesperson may contain
high costs, but the revenue generated by the salesperson
may justify the investment.
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Dimensional modelling

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