The Gifi system of analyzing categorical data through nonlinear varieties o
f classical multivariate analysis techniques is reviewed. The system is cha
racterized by the optimal scaling of categorical variables which is impleme
nted through alternating least squares algorithms. The main technique of ho
mogeneity analysis is presented, along with its extensions and generalizati
ons leading to nonmetric principal components analysis and canonical correl
ation analysis. Several examples are used to illustrate the methods. A brie
f account of stability issues and areas of applications of the techniques i
s also given.