This E-Team developed a new sensor technology, the Non-contacting Resistance Displacement Transducer (NRDT). Used primarily in the metalworking, military/aerospace, and automotive markets, displacement sensors allow accurate control of everything from robotic arms to manufacturing assembly lines. The dominant sensor on the market today is the Linear Variable Displacement Transducer (LVDT), which, while precise and robust, is expensive due to its complex structure. While researching an unrelated problem, this E-Team came up with the NRDT, a device that offers far better performance than LVDTs at a fraction of the cost. NRDT's advantage lies in its simple design, allowing the device to get less expensive as it gets smaller, while still delivering optimal performance. LVDTs, on the other hand, become more expensive as they get smaller.
Update: After winning first place in the "Most Fundable" category of the 2005 Georgia Tech Business Plan Competition, the NRDT team took its product to market. They have formed a company, Sentrinsic (intrinsic sensing), have two patents pending, have received over $150k in funding, and made their first sale in April 2006.