Data normalization improves database efficiency by organizing data to minimize redundancy and dependency. This process involves structuring a database according to specific rules, ensuring that each piece of information is stored in a single location. As a result, it enhances data integrity and consistency, making it easier to maintain and update. Normalized data allows for efficient querying and reporting, as users can retrieve relevant information without encountering duplicated entries. Ultimately, data normalization leads to improved performance, reduced storage costs, and simpler database management, driving operational efficiency for organizations.