OLAP: The Panacea for the Ills of Management Information Systems ?

Other OLAP Resources

Links: Definitions of OLAP, Features of an OLAP database, OLAP Products.

The term OLAP (On-Line Analytical Processing) was coined by Dr. E.F. Codd, his wife S.B. Codd and their associate, C.T. Salley in the research paper "Providing OLAP to User-Analysts: An IT Mandate". This paper was published in early 1993 and was sponsored by Arbor Software Corporation, the creators and vendors of ESSBASE.

In the early 1980s, Dr Codd laid down rules which formed the basis on which the current generation of relational database technology is built. In the early 1990s, Arbor Software were looking to identify a niche market which would justify the co-existence of multi-dimensional and relational databases. The research work which Dr Codd and his colleagues carried out has resulted in a formalised re-definition of the requirements for tools to implement decision support, management information, business intelligence and executive information systems. Tools to support business modelling will be obliged to pay attention to Dr Codd's rules in order to remain at the forefront. The publication of the paper has already caused significant changes in the market place. Most notably to the benefit of Arbor Software who have now formed strategic alliances with several existing players in the marketplace and whose products were rumoured to be on line to be distributed by Microsoft in a deal which will make a multi-dimensional engine available behind Excel.

In general terms, the controversy over the rules has mirrored that which surrounded the publication of the relational rules. Product vendors have either been keen to prove how compliant their tools are and to extend the rules to reflect their own tool's strengths or have poured cold water on them, arguing that the research was biased and unnecessary.

As with many dichotomies, truth probably lies somewhere between the two extremes.

What is an OLAP database?

Links: Top of Document,Features of an OLAP database, OLAP Products.

"...a multidimensional server database which makes available management information interactively to a client on the end-user desktop. The client can be a spreadsheet-like graphical interface, a bespoke interface, an executive information system or any other similar tool. In all cases, users can choose the information they want using simple English language dialogue boxes and navigation tools, changing the data, with immediate response as they work. Users can carry out their own analysis in accordance with their individual needs and IT departments can stop worrying about user requirements."Computing, 9 June 1994

This is obviously a wide definition which covers a range of applications and tools. The requirements of the above definition could also be meet by a range of different types of data storage and presentation technology from flat files to relational databases. It is also very much a technical definition.

Dr Codd defines OLAP as "... the name given to the dynamic enterprise analysis required to create, manipulate, animate and synthesise information from ... "Enterprise Data Models"... This includes the ability to discern new or unanticipated relationships between variables, the ability to identify the parameters necessary to handle large amounts of data, to create an unlimited number of dimensions (consolidation paths) and to specify cross-dimensional conditions and expressions." "Providing OLAP (On-Line Analytical Processing) to User-Analysts: An IT Mandate", E.F. Codd, S.B. Codd and C.T. Salley, 1993, courtesy of Comshare.

He goes on to outline three significant characteristics of OLAP:

Dynamic Data Analysis,
in which historical data must be manipulated extensively involving multiple data dimensions. It can provide an understanding of the changes that take place within an enterprise over time. Several product vendors have concentrated on producing databases to support this "time series" analysis of data.
Four Enterprise Data Models.
These four models allow for the definition of data structures (Categorical), the storing of historical data in the structure (Exegetical), the exploration of "what-if" scenarios (Contemplative) and a model to indicate the complex relationships which exist between apparently disconnected variables (Formulaic).
Common Enterprise Data.
The data which is presented through any OLAP access route should be identical to that used in operational systems.

Features of an OLAP Database

Links: Top of Document,Definitions of OLAP, OLAP Products.The following points summarise the key aspects of the 12 OLAP rules as defined by Dr. Codd in his paper.

  1. Multi-Dimensional Conceptual View
    OLAP databases support a multi-dimensional view of the data allowing for the classic "slice and dice" operations or pivoting and rotation of the conceptual cube of data. This might involve looking at the data in terms of the products or product categories on display as well as by the outlet channel that provided the business and then moving on to levels of persistency inherent in the business from each source. All of this available as and when required by the user-analyst. Interestingly, this rule is given subtle levels of shading by some suppliers of OLAP-type software who argue that a multi-dimensional conceptual view of data can be achieved without multi-dimensional storage.
  2. Transparency
    The users should have no need to know that they are looking at an OLAP database. As far as they are concerned, they are using tools with which they are familiar to get the data they require in order to make the decisions they have been charged with making. Nor should they need to know the source of the data. For example, there should only be one definition of persistency and this should be applied at all data sources irrespective of their provenance.
  3. Accessibility
    The tools in use should have a map of data sources within it (the implementation of the Categorical model) which point it to the most appropriate source of data to support a specific query and perform any conversions of data or semantic meaning in order to give an agreed and predetermined interpretation of the enterprise business model.
  4. Consistent Reporting Performance
    As the number of dimensions or the number of levels of aggregation changes, there should be no alteration in the way key figures are calculated. The system models should be robust enough to cope with changes to the enterprise model. This is essential if the figures presented in the OLAP tool are to be believed and its analysis or predictions are to be trusted.
  5. Client-Server Architecture
    The OLAP tools should be capable of being deployed in a client-server environment, implying that the multi-dimensional database server should be accessible from a range of other applications and tools. This is probably one of the most contentious of Codd's rules since few products in the marketplace currently meet this criteria. ESSBASE and, to a lesser extent, Express are probably the only two that can comply.
  6. Generic Dimensionality
    "Every data dimension must be equivalent in both its structure and operational capabilities ... The basic data structure, formulae and reporting formats should not be biased toward any one data dimension." "Providing OLAP (On-Line Analytical Processing) to User-Analysts: An IT Mandate", E.F. Codd, S.B. Codd and C.T. Salley, 1993, courtesy of Comshare.
  7. Dynamic Sparse Matrix Handling
    Typical multi-dimensional models can easily run into millions of cell references, many of which will have no appropriate data at any one point in time. These null values should be stored in an efficient way and not have an adverse affection the accuracy or speed of information retrieval.
  8. Multi-User Support
    OLAP tools should support and indeed encourage group working and the interchange of ideas and analyses between users. To achieve this, multi-user access to the data is essential.
  9. Unrestricted Cross-Dimensional Operations
    The rules which govern the progress of data "roll ups" through levels of a hierarchy should be defined and available so that no matter which slice of data is taken, the rules will be applied consistently.
  10. Intuitive Data Manipulation
    The user-analyst's view of the data should at all times contain all information necessary to effect the navigations (the slicing and dicing) which are appropriate without the need to resort to the use of a menu or multiple trips across the user interface.
  11. Flexible Reporting
    The user should be able to retrieve any view of the data required and present it in any way that they require.
  12. Unlimited Dimensions and Aggregation Levels
    There should be no limit imposed by the OLAP tool to the number of dimensions which can be built into a model.

Links: Definitions of OLAP, Features of an OLAP database, OLAP Products.

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e-Mail: simong@sgroves.demon.co.uk