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Database Normalization is a process of eliminating duplicated data in a relational database. The key idea is to relate pieces of data together instead of storing the same data over and over again. Well-normalized databases have a design that reflects the true dependencies between tracked quantities, allowing quick updates to data with little risk of introducing inconsistencies. This not only increases the performance of the Relational DataBase Management System (RDBMS) that is used to warehouse the data, but the ease of accessing relevant data and making connections between data that forms the basis of today's Business Intelligence applications.
There are formal methods for quantifying "how normalized" a relational database is, and these classifications are called normal forms (or NF). Though algorithms exist for converting a given database between forms, these may require splitting existing tables into ones that are re-joined each time a query is issued. This can lead to poor performance, so intentional denormalization is sometimes preferred.
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