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Online transaction processing, or OLTP, refers to a class of systems that facilitate and manage transaction-oriented applications, typically for data entry and retrieval transaction processing. 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.^[1] OLTP has also been used to refer to processing in which the system responds immediately to user requests. An automatic teller machine (ATM) for a bank is an example of a commercial transaction processing application.

The technology is used in a number of industries, including banking, airlines, mailorder, supermarkets, and manufacturing. Applications include electronic banking, order processing, employee time clock systems, e-commerce, and eTrading. The most widely used OLTP system is probably IBM's CICS.^{[citation needed]}

Contents 1 Requirements 2 Benefits 3 Disadvantages 4 See also 5 Contrasted To 6 References 7 External links

Online transaction processing increasingly requires support for transactions that span a network and may include more than one company. For this reason, new OLTP software uses client/server processing and brokering software that allows transactions to run on different computer platforms in a network.

In large applications, efficient OLTP may depend on sophisticated transaction management software (such as CICS) and/or database optimization tactics to facilitate the processing of large numbers of concurrent updates to an OLTP-oriented database.

For even more demanding decentralized database systems, OLTP brokering programs can distribute transaction processing among multiple computers on a network. OLTP is often integrated into service-oriented architecture and Web services.

Online Transaction Processing has two key benefits: simplicity and efficiency.

Reduced paper trails and the faster, more accurate forecasts for revenues and expenses are both examples of how OLTP makes things simpler for businesses. It also provides a concrete foundation for a stable organization because of the timely updating. Another simplicity factor is that of allowing consumers the choice of how they want to pay, making it that much more enticing to make transactions.

OLTP is proven efficient because it vastly broadens the consumer base for an organization, the individual processes are faster, and it’s available 24/7.

It is a great tool for any organization, but in using OLTP, there are a few things to be wary of: the security issues and economic costs.

One of the benefits of OLTP is also an attribute to a potential problem. The worldwide availability that this system provides to companies makes their databases that much more susceptible to intruders and hackers.

For B2B transactions, businesses must go offline to complete certain steps of an individual process, causing buyers and suppliers to miss out on some of the efficiency benefits that the system provides. As simple as OLTP is, the simplest disruption in the system has the potential to cause a great deal of problems, causing a waste of both time and money. Another economic cost is the potential for server failures. This can cause delays or even wipe out an immeasurable amount of data.

• Data mart
• Data warehouse
• OLAP
• ETL
• Transaction processing
• Database transaction
• Derby in-memory Java Database
• IBM Customer Information Control System

• Batch Processing
• Grid Computing

1. ^ http://www.tpc.org/

• IBM CICS official website
• Transaction Processing Performance Council
• Comparison of OLTP and OLAP at gnuLAMP
• OLTP Schema
• Transaction Processing: Concepts & Techniques Management
• About Processing - in Hebrew - By Yoram Azrakיורם אזרק
• Business Intelligence OLTP

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