Data warehousing involves extracting and consolidating data from multiple sources into a centralized database to support decision-making across an organization. It provides a comprehensive, integrated, and historical view of data organized by subject area rather than transactionally. Data warehouses use dimensional modeling and star schemas to store aggregated, multidimensional data in a way that facilitates analysis. Online analytical processing (OLAP) tools enable interactive exploration and analysis of multidimensional data through techniques like drill-down, roll-up, and slicing and dicing.