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Database Marketing, Business Intelligence and Knowledge Discovery

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Transactional vs. Analytical Data<br />

Processing<br />

<br />

<br />

Transactional processing takes place in operational<br />

systems that provide the organization with the<br />

capability to perform business transactions <strong>and</strong><br />

produce transaction reports. This is done primarily for<br />

fast <strong>and</strong> efficient processing of routine, repetitive data.<br />

Supplementary activity to transaction processing is<br />

called analytical processing, which involves the<br />

analysis of accumulated data. Analytical processing,<br />

sometimes referred to as business intelligence,<br />

includes data mining, decision support systems (DSS),<br />

querying, <strong>and</strong> other analysis activities. These analyses<br />

place strategic information in the h<strong>and</strong>s of decision<br />

makers to enhance productivity <strong>and</strong> make better<br />

decisions, leading to greater competitive advantage.<br />

Engineering <strong>and</strong> Technology Management<br />

6

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