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In this video tutorial, Mark Davis from Optimum Technology Transfer explains how to use the REPLACE function in Excel. He discusses the importance of text or string functions for cleaning and organizing data. Davis demonstrates the REPLACE function using a series of order IDs consisting of two numbers, four characters, and three additional numbers. His goal is to standardize these order IDs by replacing the varying four characters within each ID. He emphasizes that this tutorial is part of a broader series focused on Excel's text functions.