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Online Analytical Processing

Online Analytical Processing
In today’s markets the information plays a critical role in a sustainability of any business. Companies invest in technology that allows them to collect massive amounts of data: data marts and warehouses, database structures, specialized servers, and Web-enable software products (O'Brien & Marakas, 2011). The ability to analyze and synthesize the available data can be a source of a competitive advantage for any firm. Online Analytical Processing (OLAP) is one of tools that can assist managers in making sound business decisions.
OLAP is a powerful technology behind many Business Intelligence (BI) applications. It offers many capabilities for data discovery, report viewing, complex analytical calculations, and planning (Olap.com, n.d.). In other words, OLAP is a “computer-enhanced multidimensional analysis” (Achor, 2002). The term OLAP was created by E.F. Codd in 1993. According to Codd and associates, OLAP is made up of many speculative “what-if” and/or “why” data model scenarios conducted within the context of the specific historical basis (Codd, Codd and Salley, 1993). Under these scenarios, the values of major parameters are changed to show potential variances in “supply, production, the economy, sales, marketplace, costs, and/or other environmental and internal factors” (Codd, Codd and Salley, 1993, p.6). These variable groups or dimensions make up a base for the company’s planning, analysis and reporting activities (Bogue, 2005). OLAP tools do not keep individual transaction records in a row-by-column format, like relational databases. Instead, they store consolidated information in multidimensional cubes (Olap.com, n.d.). When necessary, analysts use operations called consolidation, “drill-down”, and “slicing and dicing” to generate a worksheet-like display of viewpoints (O'Brien &

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