I am trying to create dimensional model on a flat OLTP tables (not in 3NF).
There are people who are thinking dimensional model table is not required because most of the data for the report present single table. But that table contains more than what we need like 300 columns. Should I still separate flat table into dimensions and facts or just use the flat tables directly in the reports.
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You've asked a generic question about database modelling for data warehouses, which is going to get you generic answers that may not apply to the database platform you're working with - if you want answers that you're going to be able to use then I'd suggest being more specific.
The question tags indicate you're using Amazon Redshift, and the answer for that database is different from traditional relational databases like SQL Server and Oracle.
Firstly you need to understand how Redshift differs from regular relational databases:
1) It is a Massively Parallel Processing (MPP) system, which consists of one or more nodes that the data is distributed across and each node typically does a portion of the work required to answer each query. There for the way data is distributed across the nodes becomes important, the aim is usually to have the data distributed in a fairly even manner so that each node does about equal amounts of work for each query.
2) Data is stored in a columnar format. This is completely different from the row-based format of SQL Server or Oracle. In a columnar database data is stored in a way that makes large aggregation type queries much more efficient. This type of storage partially negates the reason for dimension tables, because storing repeating data (attibutes) in rows is relatively efficient.
Redshift tables are typically distributed across the nodes using the values of one column (the distribution key). Alternatively they can be randomly but evenly distributed or Redshift can make a full copy of the data on each node (typically only done with very small tables).
So when deciding whether to create dimensions you need to think about whether this is actually going to bring much benefit. If there are columns in the data that regularly get updated then it will be better to put those in another, smaller table rather than update one large table. However if the data is largely append-only (unchanging) then there's no benefit in creating dimensions. Queries grouping and aggregating the data will be efficient over a single table.
JOINs can become very expensive on Redshift unless both tables are distributed on the same value (e.g. a user id) - if they aren't Redshift will have to physically copy data around the nodes to be able to run the query. So if you have to have dimensions, then you'll want to distribute the largest dimension table on the same key as the fact table (remembering that each table can only be distributed on one column), then any other dimensions may need to be distributed as ALL (copied to every node).
My advice would be to stick with a single table unless you have a pressing need to create dimensions (e.g. if there are columns being frequently updated).
