Data normalization is the process of organizing data in a database to reduce redundancy and improve data integrity. It involves breaking down tables into smaller, more manageable parts to avoid data duplication. On the other hand, data standardization is the process of converting data into a uniform format to make it consistent and compatible across different sources. This ensures data accuracy and facilitates effective analysis and reporting. By combining normalization and standardization, organizations can optimize their data quality and make informed decisions based on reliable, consistent data.