Fact Table

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1. What is a Fact Table?

A fact table stores numerical measurements or metrics (facts) related to a specific business process. It is typically surrounded by dimension tables that provide descriptive context. For example, in a sales data warehouse, a fact table might store sales revenue, quantity sold, and profit, linked to dimensions like time, product, and customer.

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2. Key Features of Fact Tables

• Measures: Numerical data representing business metrics (e.g., sales amount, quantity sold).
• Foreign Keys: Links to dimension tables (e.g., product ID, customer ID, time ID).
• Granularity: The level of detail stored in the fact table (e.g., daily sales, monthly sales).
• Additive, Semi-Additive, or Non-Additive Measures:
  • Additive: Can be summed across all dimensions (e.g., sales revenue).
  • Semi-Additive: Can be summed across some dimensions but not all (e.g., inventory levels).
  • Non-Additive: Cannot be summed (e.g., profit margin).
• Sparse Data: Fact tables often contain sparse data, as not all combinations of dimensions may have associated facts.

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3. Types of Fact Tables

1. Transaction Fact Tables:
   • Store data at the transaction level (e.g., individual sales transactions).
   • High granularity and large volume of data.
2. Snapshot Fact Tables:
   • Capture data at specific points in time (e.g., daily inventory levels).
   • Lower granularity compared to transaction fact tables.
3. Accumulating Fact Tables:
   • Track processes that have a well-defined lifecycle (e.g., order fulfillment).
   • Include dates for each stage of the process.
4. Factless Fact Tables:
   • Store only foreign keys without numerical measures (e.g., tracking attendance or events).

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4. Structure of a Fact Table

• Foreign Keys: Links to dimension tables (e.g., product ID, customer ID, time ID).
• Measures: Numerical data representing business metrics (e.g., sales amount, quantity sold).
• Degenerate Dimensions: Attributes stored directly in the fact table (e.g., transaction ID).

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Example: Sales Fact Table

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5. Advantages of Fact Tables

• Efficient Querying: Optimized for fast aggregation and analysis of numerical data.
• Scalability: Handles large volumes of data efficiently.
• Flexibility: Supports complex analytical queries across multiple dimensions.
• Consistency: Links to conformed dimensions ensure consistent reporting.
• Granularity Control: Allows analysis at different levels of detail.

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6. Challenges of Fact Tables

• Data Volume: Can grow very large, requiring efficient storage and indexing.
• Complexity: Designing fact tables with the right granularity and measures can be challenging.
• Performance: Aggregating large datasets can impact query performance.
• Data Quality: Ensuring accurate and consistent data in the fact table is critical.

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7. Use Cases of Fact Tables

• Sales Analysis: Analyzing sales revenue, quantity sold, and profit by product, customer, or region.
• Inventory Management: Tracking inventory levels and turnover rates.
• Financial Reporting: Reporting financial metrics like revenue, expenses, and profit by department or time period.
• Customer Behavior: Analyzing customer transactions and purchasing patterns.
• Operational Metrics: Monitoring key performance indicators (KPIs) for business processes.

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8. Best Practices for Fact Tables

• Choose the Right Granularity: Define the level of detail based on business requirements.
• Use Surrogate Keys: Link to dimension tables using surrogate keys for consistency.
• Optimize for Performance: Use indexing and partitioning to improve query performance.
• Handle Sparse Data: Design the fact table to efficiently store sparse data.
• Document Measures: Clearly define the meaning and calculation of each measure.
• Regular Maintenance: Update and clean the fact table to ensure data quality.

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9. Key Takeaways

• Definition: A fact table stores numerical measures related to a business process, linked to dimension tables for context.
• Key Features: Measures, foreign keys, granularity, additive/semi-additive/non-additive measures, sparse data.
• Types: Transaction fact tables, snapshot fact tables, accumulating fact tables, factless fact tables.
• Structure: Foreign keys, measures, degenerate dimensions.
• Advantages: Efficient querying, scalability, flexibility, consistency, granularity control.
• Challenges: Data volume, complexity, performance, data quality.
• Use Cases: Sales analysis, inventory management, financial reporting, customer behavior, operational metrics.
• Best Practices: Choose the right granularity, use surrogate keys, optimize for performance, handle sparse data, document measures, regular maintenance.