Back to glossary

OLAP (Online Analytical Processing)

A computing approach optimized for complex analytical queries over large datasets, supporting multi-dimensional analysis with operations like aggregation, filtering, and drill-down across multiple dimensions.

OLAP systems are designed for analytical workloads: complex queries that aggregate millions of rows, join large tables, compute running totals, and group by multiple dimensions. These queries are read-heavy, scan large portions of the data, and return aggregated results. Data warehouses and columnar databases are OLAP systems.

OLAP contrasts with OLTP (Online Transaction Processing), which handles high-volume transactional operations like inserting orders, updating inventory, and processing payments. OLTP systems optimize for many small, fast read-write operations; OLAP systems optimize for fewer, complex read operations over large datasets.

For AI and growth teams, OLAP systems are where analytical queries for dashboards, reports, and feature engineering run. Computing features like "total revenue per customer over the last 90 days" or "average session duration by user segment" are OLAP workloads. Understanding the OLAP nature of these queries helps teams choose appropriate tools and optimize query performance for their ML data pipelines.

Related Terms