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In this video tutorial, Mark Davis from Optimum Technology Transfer explains the use of the REPLACE function in Excel, emphasizing its role among text or string functions designed for data cleaning. He introduces a specific case involving order IDs consisting of two numbers, followed by four characters, and then three numbers. The goal is to standardize these order IDs by replacing the varying four characters with a consistent format. Davis notes that he has previously created videos on other text functions and aims to illustrate the REPLACE function's capabilities in tidying up data.