Normalization removes the average and divides by the standard deviation. When normalization is applied in conjunction with processed, it compensates for optical path differences. When used alone, it compensates for gain.
For example, compensation is applied for the possible distance irregularities that are likely to occur when scanning different samples. SCiO’s normalized spectrum apply the industry standard calculation of SNV.
For more information about SNV deviation, see here: Advanced Preprocessing: Sample Normalization