Designing a dimensional model involves several steps. Firstly, you must identify the business process and the grain of the data. The business process is the main subject of the analysis, such as sales, orders, or inventory, while the grain is the level of detail of the data, such as daily, monthly, or per transaction. Secondly, you must identify the facts and dimensions of the data. The facts are numerical measures that correspond to the business process and grain, while dimensions are descriptive attributes that provide context and filters for the facts. Thirdly, normalize the dimensions and denormalize the facts. This means splitting dimensions into separate tables based on their hierarchy and relationship; for example, date, month, quarter, and year. Denormalizing facts involves combining them into one table with all foreign keys to dimensions; for example, sales fact table with date key, product key, customer key, and sales amount. Finally, apply dimensional modeling patterns and best practices to your model. Different types of dimensional models exist such as star schema, snowflake schema or galaxy schema depending on complexity and number of dimensions/facts. There are also various techniques to handle common challenges in dimensional modeling such as slowly changing dimensions, degenerate dimensions or bridge tables.