Online transaction processing

Online transaction processing (OLTP) is a class of information systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing on a database management system.

The term is somewhat ambiguous; some understand a "transaction" in the context of computer or database transactions, while others (such as the Transaction Processing Performance Council) define it in terms of business or commercial transactions. OLTP has also been used to refer to processing in which the system responds immediately to user requests. An automated teller machine (ATM) for a bank is an example of a commercial transaction processing application. Online transaction processing applications are high throughput and insert or update-intensive in database management. These applications are used concurrently by hundreds of users. The key goals of OLTP applications are availability, speed, concurrency and recoverability. Reduced paper trails and the faster, more accurate forecast for revenues and expenses are both examples of how OLTP makes things simpler for businesses. However, like many modern online information technology solutions, some systems require offline maintenance, which further affects the cost–benefit analysis of on line transaction processing system.

OLTP is typically contrasted to OLAP (online analytical processing), which is generally characterized by much more complex queries, in a smaller volume, for the purpose of business intelligence or reporting rather than to process transactions. Whereas OLTP systems process all kinds of queries (read, insert, update and delete), OLAP is generally optimized for read only and might not even support other kinds of queries.

OLTP system is a popular data processing system in today's enterprises. Some examples of OLTP systems include order entry, retail sales, and financial transaction systems. On line transaction processing system increasingly requires support for transactions that span a network and may include more than one company. For this reason, modern on line transaction processing software use client or server processing and brokering software that allows transactions to run on different computer platforms in a network.

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