On a high level, if you observe as to where normalization/standardization is mostly used, you will notice that, anytime there is a use of magnitude difference in model building process, it becomes necessary to standardize the inputs so as to ensure that important inputs with small magnitude don't loose their significance midway the model building process.
example:
v(3-1)^2+(1000-900)^2 ˜ v(1000-900)^2
Here, (3-1) contributes hardly a thing to the result and hence the input corresponding to these values is considered futile by the model.
Consider the following:
Both distance measure(Clustering) and cost function(NNs) use magnitude difference in some way and hence standardization ensures that magnitude difference doesn't command over important input parameters and the algorithm works as expected.