I'm not sure that's the thing he's most known for. I know his work mainly from SLOCCount [1] and his clever solution for Ken Thompson's "Reflections on Trusting Trust" hack [2].
He is the co-inventor of "Burrows–Wheeler transform", which is a key component in any modern genomics analysis pipeline, used in bzip2 (the "b" stands for BWT), etc.
1. http://www.dwheeler.com/readable/index.html