Dimensional modeling is a data warehouse design technique that organizes data into fact tables and dimension tables to optimize analytical queries and reporting. It is commonly used in OLAP systems because it simplifies querying and provides better performance for business intelligence workloads.

Fact Table

Example:
In an e-commerce system, an Order Fact table could store:

order_id  
customer_key  
product_key  
date_key  
quantity  
sales_amount  
discount_amount

Each row may represent one product within an order.

Dimension Table

A dimension table stores descriptive attributes that provide context to facts.
Dimensions answer the business questions: Who, What, When, Where and How

Examples:
Customer Dimension

customer_key  
customer_name  
city  
state  
country

Product Dimension

product_key  
product_name  
category  
brand

Conformed Dimensions

A conformed dimension is a dimension shared across multiple fact tables with the same meaning and structure.

Example:
Customer Dimension used by: Sales Fact, Returns Fact, Shipment Fact

This ensures consistent reporting across business processes.

Grain

The grain defines exactly what a single row in the fact table represents. It is the most important step in dimensional modeling and should be defined before identifying facts and dimensions. For example: One row per order, One row per product in an order.
Once the grain is defined, every fact and dimension must be consistent with that grain.

Interview Summary for Dimensional Modelling (30-Second Answer)

Dimensional modeling is a data warehouse design approach that organizes data into fact and dimension tables for analytical reporting. Fact tables store business measures, while dimension tables store descriptive attributes that provide context. Before designing a fact table, we define its grain, which specifies exactly what a row represents. We can also have conformed dimensions, which are shared dimensions used across multiple fact tables to ensure consistent reporting.


Star Schema - Data Model

Snowflake Schema - Data Model

Snowflake vs Star Schema

Snowflake schemas offer more storage efficiency, due to their tighter adherence to high normalization standards, but query performance is not as good as with more denormalized data models. Denormalized data models like star schemas have more data redundancy (duplication of data), which makes query performance faster at the cost of duplicated data.