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Differences between Operational Database Systems and Data Warehouse

Here, we are going to learn about the differences between operational database systems and data warehouse.
Submitted by Palkesh Jain, on February 03, 2021

Data Warehouse

The word "Data Warehouse" was first coined by Bill Inmon in 1990. A data warehouse is an automated, time-variant, non-volatile, subject-oriented data set. It helps researchers to find meaningful insights that can be used further in decision making. It provides us with generalized and consolidated multidimensional information.

Data storage provides corporate leaders with architectures and tools to systematically manage to interpret and use their data to make strategic decisions. A compilation of organizational data aggregated from one or more sources is Data Warehouse. It functions as a business analytical instrument that allows data to be evaluated and compared to solve working challenges and enhance business processes. Data warehousing is a set of technologies for decision support aimed at allowing more and quicker choices to be taken by the intelligence worker (executive, boss, and analyst). It acts as a physical application of a data model for decision support and holds the data from which strategic decisions must be taken by an organization.

Operational Database System

The Operational Database is a database where knowledge often changes. They are designed specifically for large data transaction volumes. They are the data warehouse's source log. It is used in various access environments to preserve online transactions and document confidentiality. An operating database is designed to run the company's day-to-day processes or transactions. Either by offering real-time dashboards or promoting the ability to integrate analytics into operating processes, it can also be called upon to assist analytical processing. The basis of knowledge for the data warehouse is the operating archive. It provides extensive details used to operate the company's day-to-day activities. When adjustments are made, the data also changes and represents the actual meaning of the new transactions.

Often known as OLTP (Online Transactions Processing Databases), Operational Database Management Systems are used to handle complex data in real-time. For data collection and decision-making, Data Warehouse Services support consumers or information workers. To satisfy the varied needs of different users, such structures should arrange and display information in specific formats. These applications are referred to as systems for Online-Analytical Analysis (OLAP).

Differences b/w Operational Database Systems and Data Warehouse

The key differences between the Operational Database and Data Warehouse are described below -