# Online analytical processing

Online analytical processing (OLAP) is an approach to producing
real-time reports and insights, usually based on large amounts of source
data.

A major function of OLAP tools is to provide data-based intelligence to
inform and support business decisions. The target data usually includes
operational activities that are then analyzed for use by various
functions, such as sales, marketing, and finance.

From a technical perspective, most traditional, row-oriented database
systems are better suited to online transactional processing (OLTP), but
are not very efficient for OLAP scenarios. Column-oriented databases are
more efficient, as they provide quicker access to subsets of the stored
data. However, most database systems aim for a hybrid approach that
primarily focuses on optimizing either OLAP or OLTP scenarios, while
offering solutions to support the alternative scenario.