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Mark Davis from Optimum Technology Transfer introduces the replace function in Excel, which is a part of the text or string functions in Excel. He explains how to use the replace function to standardize data, specifically looking at order IDs made up of two numbers, four characters, and three other numbers. The function helps to clean and tidy up data by replacing specific characters in the order IDs. Davis has created other YouTube videos on text or string functions and demonstrates the process in this tutorial.