News

People to watch: Michael Lutz

A conversation with key players in San Diego's technology and life sciences industries.

January 27, 2006
San Diego Union Tribune

Position: Chief executive officer

Company: AwarePoint

Age: 57

Lutz, an entrepreneur with a doctorate in physics from Massachusetts Institute of Technology and a master's degree in business from Stanford University, joined AwarePoint in 2004 as its chief executive.

The company, founded in 2002, makes indoor positioning systems that can be used to locate objects or people inside buildings. The equipment went on the market last year. It's currently in use at two hospitals in San Diego, the Naval Medical Center and UCSD Thornton Hospital, to track medical equipment.

A small radio frequency identification tag is attached to a person or an object, such as a piece of medical equipment. Wireless receivers that plug into an electrical outlet can pinpoint the equipment's location. Hospital workers use a computer to find the equipment's location on a map.

James D. Adams founded AwarePoint with his friend Derek Smith to create a wireless device that would be able to locate children in amusement parks. That idea evolved into the indoor positioning system the company makes today.

Last month, AwarePoint received the "Most Innovative New Product" award in the hardware category from Connect, a San Diego business development organization founded by the University of California, San Diego.

Why does your company exist?

AwarePoint's plug and position product is an active radio frequency identification system that locates equipment and people inside buildings. The product is innovative in that there are no wall-or ceiling-mounted RFID readers, and no load on existing wireless networks such as Wi-Fi. It is the first cost-effective solution to the age-old question: Where are my assets (people and equipment)?

How did you get your job with AwarePoint?

I was at a meeting of the Tech Coast Angels, a local angel investor group, when Joe Baker, then AwarePoint's CEO, announced that he had met the love of his life and was moving to Canada to join her. He then asked if anyone was interested in taking over for him at AwarePoint. My arm shot up uncontrollably.

What is your company's biggest challenge?

Our biggest challenge is that our product is innovative. Customers have not had an automated way to search for equipment and people inside buildings until now. So when we offer our product to them, they say, "Well, why do we need it? We've always managed before." So we say, "Try it, you'll like it." We've been willing to put in pilot installations. Once they try it, they don't want to live without it.

What aspects of your job do you brag about?

I am proud of what we have accomplished with minimal resources. Only $1.5 million has been invested over three-and-a-half years, yet we have a unique product, customers and revenues. I am most proud of our four guys who have a great work ethic, are totally honest and a delight to work with.

What about your job keeps you up at night?

Nothing. I sleep great.

Tell us something interesting about yourself.

Exactly 20 years ago, I was running a Bay Area startup called GammaLink. We invented the PC-FAX modem. I would call people and try to sell them one. They would ask me: "What's a fax?" Fortunately, the fax machine took off and so did the PC-FAX modem. The company is now part of Intel. I went sailing for seven years prior to settling in San Diego.

—KATHRYN BALINT