Volkswagen’s Diesel Deception

Between 2009 and 2015, Volkswagen manufactured and marketed clean diesel automobiles that were designed to provide high performance without the polluting emissions commonly associated with diesel engines. These turbocharged direct injection (TDI) clean diesel vehicles were very popular in Western Europe, where environmentally conscious or “green” consumers found they could have fast, responsive cars that seemed to sip diesel. On September 18, 2015, the U.S. Environmental Protection Agency announced that it was suing the Volkswagen Group for selling over 482,000 diesel Volkswagens and Audis with software “defeat devices” that caused the vehicles to be far more polluting than expected during normal driving. The vehicles would be recalled for repairs.
In the following weeks, the U.S. and German investigators swarmed into Volkswagen offices, including the company’s international headquarters in Wolfsburg, Germany, and the corporate offices of the company’s U.S. subsidiary, Volkswagen Group of America (VWoA). The Volkswagen group manufactures and markets automobiles, vans, and trucks around the world in a variety of brands. The Volkswagen marque is the company’s most popular brand. Prestige brands such as Audi, Porsche, and Bentley have significantly lower sales volumes, but much higher margins. In May 2016, VW reported a quarterly profit on Volkswagen-branded cars of only €73 million for the first quarter of 2016, a significant decrease from the €514 million profit it posted in the first quarter of 2015. Much of the profits were erased by dealer incentives and consumer rebates that supported sales of gasoline-powered Volkswagen-branded vehicles. As a whole, Volkswagen Group posted a quarterly profit of €2.4 billion; Audi and Porsche accounted for two-thirds of that profit.

Volkswagen’s History and Culture

Founded in 1937, Volkswagen was intended to produce a “people’s car,” designed by Ferdinand Porsche, for the citizens of the Third Reich. The town of Wolfsburg was established in 1938 for VW employees.
U.S. distribution of the VW Beetle, a modified version of the original “people’s car” design, began in 1949. The company founded Volkswagen Group of America (VWoA) in 1955, and created the Audi marque in 1969. VW’s international success helped spur the recovery of West Germany. VW opened a U.S.$1 billion manufacturing facility in Chattanooga, Tennessee, in 2008. To secure Volkswagen’s commitment, the state of Tennessee offered Volkswagen a package of tax incentives that grew to almost $U.S.1 billion by 2015. Porsche took over VW in 2009 after decades of cooperation and conflict between the Porsche family and Volkswagen management.
In 2015, Volkswagen was tightly controlled by the billionaire descendants of Ferdinand Porsche, who own 50 percent. Independent shareholders own about 12 percent of the stock. The north German state government of Lower Saxony, where Wolfsburg is located, and Qatar’s sovereign wealth fund own the rest. A network of powerful German labor unions participate in management decisions, as compensation for funds that were confiscated after World War II. Volkswagen had a fleet of corporate jets, including an Airbus A319; VW owned over 100 factories in 31 countries across 12 different brands (see Figure 1), and the Volkswagen air services subsidiary that flew company executives as needed.
Figure 1

Volkswagen Automotive Brands

Volkswagen
Audi
Bentley
Bugatti
Lamborghini
Ducati
MAN
Porsche
Scania
SEAT
ŠKODA
Sources: Volkswagen, “Brands and products,” http://www.volkswagenag.com/content/vwcorp/content/en/brands_and_products.html. Accessed June 8, 2016.
“Be aggressive at all times” was how one Volkswagen executive described the company’s confident approach to global competition. Volkswagen chief executives including Ferdinand Piëch, a grandson of Ferdinand Porsche, and Piëch’s successor, Martin Winterkorn, heavily promoted clean diesel technology as part of the company’s environmental commitment. He had promised that Volkswagen would surpass Toyota to become the world’s largest automobile manufacturer, and that clean diesel vehicles, not hybrids, were the key to global domination.
Soon after the EPA recall announcement in September 2015, Winterkorn resigned. In December 2015, the new CEO, Mathias Müller, and the chairman of Volkswagen’s supervisory board announced in a press conference that Volkswagen employees had created the emissions test scheme in 2005, after realizing the company’s diesel technology could not pass U.S. environmental standards. CEO Müller, announced that the company might have to sell the corporate Airbus A319 corporate jet, among other major changes. The company set aside €6.7 billion to cover the costs of repairing faulty diesel cars, including the option of repurchasing some diesel vehicles from consumers. While Volkswagen planned to keep its 12 different brands, plans for a €100 million corporate design center intended for Wolfsburg were scrapped.
In January 2016, members of the Porsche and Piëch families, who owned half of Volkswagen, made public statements endorsing Müller after his controversial visit to the United States. In an NPR interview recorded during a visit to Detroit, Müller apologized for the scandal, and promised to “deliver appropriate solutions to [VWoA] customers.” Earlier in the interview, Müller claimed that Volkswagen did not lie to the American public:
Frankly spoken, it was a technical problem. We made a default, we had a … not the right interpretation of the American law. And we had some targets for our technical engineers, and they solved this problem and reached targets with some software solutions which haven’t been compatible to the American law. That is the thing. And the other question you mentioned — it was an ethical problem? I cannot understand why you say that. 
NPR interviewed Müller the next day, and the CEO attempted to mitigate the damage of his previous statements:
We have to accept that the problem was not created three months ago. It was created, let me say, 10 years ago. … We had the wrong reaction when we got information year by year from the EPA and from the [California Air Resources Board]…. We have to apologize for that, and we’ll do our utmost to do things right for the future.
In April 2016, Volkswagen agreed to repurchase almost all the affected 2 L diesel vehicles in the United States, and further agreed to provide owners with additional compensation. This buyback program was estimated to cost U.S.$7 billion, but it did not include 3-liter diesel vehicles from Audi and Porsche. Later in April, Müller personally apologized to President Barack Obama for the emissions scandal. The following month, Volkswagen challenged the U.S. Department of Justice’s authority in the matter, claiming that the affected cars were sold not by the European parent companies, but by local businesses in the United States. While Volkswagen’s European operations designed the automobiles and their emissions systems, many of the affected diesel automobiles were manufactured in Volkswagen’s Chattanooga facility.

Cheating the System

The emissions control systems used in the affected Volkswagen, Audi, and Porsche cars included software designed by Volkswagen engineers to deceive or cheat emissions tests. Automakers often use common body frames, engines, components, and software across multiple brands to reduce duplication and costs. Emissions tests usually involve running at several different speeds while the driving wheels of the vehicle rest on a treadmill. When testing a front wheel drive model, the back wheels remain stationary. To test an all-wheel or four-wheel drive vehicle, treadmills are placed under both axles. The vehicle is connected to a dynamometer, a device that measures the torque or power of an engine. Sensors attached to the vehicle’s exhaust pipe measure the vehicle’s emissions.
The test or “dyno” mode used in the engine control unit (ECU) of VW diesel vehicles was activated only when the following conditions were met:
the steering wheel was not being moved;
the vehicle was operating at a constant speed; and
the atmospheric barometric pressure was steady. 
In April 2016, German newspapers and television broadcasts revealed that an early version of this “dyno” mode plan was found in a 2006 PowerPoint presentation that had been prepared by a German Volkswagen executive. Under normal driving conditions, the vehicle’s braking and stability control systems might take over the vehicle because a lack of steering column movement; this is one indication of a loss of vehicular control, such as a skid. Therefore, the test or “dyno” mode performed a useful function by allowing the vehicle to be driven normally on a dynamometer.
The ECU, braking, and stability control modules for VW diesel vehicles were manufactured by Bosch, a major manufacturer of automotive components. These components were programmed by VW engineers, using proprietary code developed within the company. The U.S. Environmental Protection Agency (EPA) performs emission testing on only about 10 to 15 percent of new cars each year, and relies on automobile manufacturers to certify the emissions performance of its vehicles. According to Columbia University law professor Eben Moglen, “[s]oftware is in everything … proprietary software is an unsafe building material. You can’t inspect it.” In the summer of 2015, the EPA announced that it opposed inspection of proprietary automobile software, supporting automobile manufacturers who claimed that people might try to reprogram their vehicles systems to increase performance in unsafe ways.
Volkswagen engineers took advantage of “dyno” mode by programming the ECU to shift the vehicle’s emissions control systems into a full power mode that significantly reduced emissions, but used significantly more fuel to operate. Diesel engines produce emissions that include nitrogen oxides  and ozone. These are chemical compounds that, according to the EPA, can cause “adverse respiratory effects including airway inflammation in healthy people and increased respiratory symptoms in people with asthma,” especially inside vehicles and near roads. Emissions control systems are installed in vehicles to reduce the production and/or emissions of compounds. Volkswagen started selling diesel cars in the United States in 1977, taking advantage of increased consumer interest in diesel fuel economy.
One form of Volkswagen’s diesel emissions control systems used a technology called selective catalytic reduction (SCR). This method used a solution of 70 percent water and 30 percent urea to convert  emissions to nitrogen, oxygen, water, and carbon dioxide . A computerized controller sprayed an optimal amount of liquid as the emissions passed through the exhaust system. The liquid is sold in the United States as AdBlue. This system required drivers to have the urea tank refilled periodically at a service center.
A different system was installed in the Golf and other small cars, partly because the SCR system required more space than was available. This version did not require refills; it used a nitrogen oxide trap located before the exhaust valve and catalytic converter to capture and reduce emissions. The vehicle used about 4 percent more diesel fuel when the trap was operating at full power. Some industry experts claimed that traps were less effective than urea-based systems.
VW engineers changed the vehicle’s software to turn off the nitrogen oxide trap or catalytic scrubbers during the “on road” mode that was used for normal operation of the vehicle. This boosted the vehicle’s overall speed and acceleration but reduced fuel economy while increasing  emissions by a factor of 40. VW’s diesel emissions control systems also increased the price of each vehicle between U.S.$5,000 and U.S.$8,000. 

Catching the Cheat

Government reliance upon manufacturer testing can be problematic. According to Zeynep Tufekci, an assistant professor at the University of North Carolina, smart cars and other smart devices should be tested in realistic conditions, not in a controlled environment. Companies should not be able to use copyright and intellectual property laws to restrict inspection of proprietary software, especially when the code is used in important processes such as voting and public safety. Developers should also include logs and audit trails in their software, to help document its operation.
Volkswagen’s “dyno” or cheat mode was discovered in 2014 by researchers at West Virginia University (WVU) who measured the emissions of VW diesel vehicles during long-distance driving tests. One vehicle had a nitrogen oxide trap, while two other vehicles used urea-based SCR systems. WVU was contracted by an NGO, the International Council on Clean Transportation (ICCT), to perform these tests after European investigators noticed discrepancies in their emissions tests of VW and BMW diesel vehicles. U.S. emissions testing is more stringent than European testing, and California automobile emissions standards are more stringent that Federal standards.
While the WVU report only mentioned Volkswagen once, it was clear that the VW diesel vehicles produced much higher levels of  emissions during the WVU road tests than were seen in dynamometer tests performed by the California Air Resources Board. ICCT posted the findings to its Web site in May 2014 and notified the EPA. Investigations by CARB and the EPA led to the EPA’s September 2015 announcement. The regulators refused to certify VW’s 2016 diesel vehicles for sale, leaving VW and its North American dealers with billions of dollars in new car inventory that could not legally be sold. On September 21, VW’s stock price dropped 23 percent.
Over 11 million diesel vehicles worldwide had engines that were affected by VW’s unorthodox technology; 660,000 were sold in the United States. The EPA ordered a recall of over a dozen diesel-powered models. (See Figure 2)
Figure 2

Diesel Automobiles Recalled by the EPA

Audi A3 (2010–2015)
Audi A6 Quattro (2014–2016)
Audi A7 Quattro (2014–2016)
Audi A8 (2014–2016)
Audi A8L (2014–2016)
Audi Q5 (2014–2016)
Audi Q7 (2009–2016)
Porsche Cayenne (2013–2016)
Volkswagen Beetle (2012–2015)
Volkswagen Beetle Convertible (2012–2015)
Volkswagen Golf (2010–2015)
Volkswagen Golf SportWagen (2015)
Volkswagen Jetta (2009–2015)
Volkswagen Passat (2012–2015)
Volkswagen Touareg (2009–2016)
U.S. consumers were assured that they could continue to drive their affected vehicles while the recall was being organized. For 2015 and 2016 model year vehicles that used the nitrogen oxide trap, the repair was most likely a software patch, installed by a dealer. More extensive modifications were needed for SCR models.

Marketing the Clean Diesel

Between 2009 and 2015, VWoA bought significant amounts of advertising for diesel vehicles in the United States, which was one of the Volkswagen’s most profitable markets. Diesel vehicle sales accounted for about 5 percent of the North American market, but about 25 percent of VW’s sales were in the diesel category. While VW is a market leader in China, diesel engines are unpopular there. There are stringent emissions control rules in European countries, especially in cities such as Paris, but diesel vehicles held a 50 percent market share in Western Europe. Between January and September 2015, VW spent $77 million on U.S. television advertising for diesel vehicles, which was about 45 percent of the company’s total in that market.
VW diesel ads used humor to emphasize the high performance and clean emissions of its diesel cars. In a 2015 campaign, three older women discussed the drawbacks of diesel cars while being driven in a VW diesel vehicle. The series, titled “Old Wives Tales,” focused on consumer complaints regarding diesel cars, including sluggish performance, loud noise, and the scarcity of diesel fuel. The passengers in the commercials were always surprised when their VW vehicle overcame the problems they discussed. Another 2015 VW advertisement showed precocious boys who cause chaos in a convenience store, to the sounds of Waylon Jennings’ country music song “Mommas, don’t let your babies grow up to be cowboys.” Their mother notices the boys are missing while she refuels their vehicle outside. A VW diesel Jetta drives by, and the viewers see the mother who is driving that vehicle while her three boys sit quietly.
Another benefit that VW and Audi emphasized in their marketing was decreased diesel fuel consumption. During the 2010 Super Bowl, Audi ran a television advertisement for its A3 TDI hatchback that showed the car as the only vehicle that could pass through a fictional “green police” checkpoint. For the 2015 diesel Jetta, VW aired a television advertisement that claimed “When you’re driving, things aren’t always what they appear to be.” The advertisement only aired a few times before it was pulled in September 2015. After the EPA’s September 18 announcement, VWoA paused its national advertising through October 11, including the company’s non-diesel vehicles. Advertising for gasoline and electric vehicles resumed slowly, as VWoA managers and ad agencies scrambled to create new campaigns and content.

Government Investigations

Over 450 VW and third-party investigators conducted a probe during late 2015 and early 2016, coordinated by the accounting firm Deloitte and a U.S.-based law firm, Jones Day. There were many obstacles in VW’s internal reports and documentation on the affected diesel systems. VW engineers used dozens of code words such as “acoustical software” when referring to the emission control countermeasures. The investigators turned their focus on about 20 VW employees. Many persons interviewed during the investigation were “reluctant to provide insight because they were afraid of the legal consequences.” The German employees under investigation were not executives. However, the idea that VW executives were unaware of the diesel defeat designs “just doesn’t’ pass the launch test,” to quote John German, a former EPA official who became a senior fellow at ICCT and helped begin that group’s investigation of VW in 2013. French authorities launched their own investigation into intentional fraud by VW.
German law exempts companies from being prosecuted for crimes; the German Penal Code or Strafgesetzbuch (StGB) stipulates that only individuals can be held liable for criminal acts. Six Volkswagen employees were under investigation for charges of corporate tax evasion. In the United States, Senators Ron Wyden (D-OR) and Orrin Hatch (R-UT) accused Volkswagen and VWAG of accepting as much as U.S.$51 million in tax incentive credits for diesel vehicles. Margo Oge, who was director of the EPA Office of Transportation and Air Quality in 2011, revealed that German Volkswagen executives had pressured the EPA for “special fuel economy credits for environmental friendliness” that were equivalent to those awarded to zero-emissions vehicles such as electric cars. Oge perceived that the German Volkswagen executives believed their diesel technology was superior to electric motors: “I never had a problem dealing with the Americans. The U.S. Volkswagen people would always come and apologize to us after meeting with the Germans. My sense was that things were being dictated by Germany.”
Whistleblowers also came forward. David Donovan, who worked at VWoA in electronic discovery and information management, claims he was fired in December 2015 after he reported his concerns to the company’s legal department. Volkswagen acknowledged that there were at least 50 other whistleblowers.
The legal responsibilities of Volkswagen and VWoA executives is also of concern. CIOs are responsible for finding and archiving data, messages, and other corporate information. In September 2015, U.S. Deputy Attorney General Sally Quillian Yates announced that the U.S. Department of Justice planned to increase its efforts to prosecute corporate executives for their involvement in corporate misconduct. Investors criticized Volkswagen’s executive compensation practices. Billionaire investor Christopher Hohn of TCI Fund Management wrote in a letter to Volkswagen’s executive supervisory boards that top management compensation appeared to be “excessive,” and was “unlinked to transparent metrics and paid in cash with no vesting or deferral, and has encouraged aggressive management behavior, contributing to the diesel scandal.”
Michael Schrage, a research fellow at MIT’s Center for Digital Business, noted that Volkswagen had brought the crisis on itself by failing to acknowledge societal and technological change. The emergence of the Internet of Things (IoT), in which products are embedded with sensors and smart systems, coupled with societal acceptance of social media, made the revelation of corporate deception far more likely than ever before.

Volkswagen Diesel Timeline

2005: Volkswagen executives make diesel the focus of the company’s U.S. marketing efforts. A small group of Volkswagen engineers and employees in Germany decide to find ways to cheat emissions testing.
2006: A Volkswagen executive prepares a PowerPoint presentation that describes how to cheat U.S. emissions testing.
2007: Martin Winterkorn becomes CEO of Volkswagen.
2008: Volkswagen opens a U.S.$1 billion production facility in Chattanooga, Tennessee, in return for U.S.$577 million in state tax incentives.
2009: Volkswagen and Porsche merge. Diesel vehicles with the altered software go on sale. VWAG launches diesel vehicle marketing campaign in the United States.
2011: Volkswagen opens a new manufacturing facility in Chattanooga, Tennessee.
2014: Volkswagen decides to expand the Chattanooga plant instead of moving production to Puebla, Mexico, based on an additional $U.S.230 million in state tax incentives.
September 18, 2015: The EPA orders Volkswagen to recall 486,000 because they used software designed to cheat emissions tests.
September 22, 2015: Volkswagen reveals that 11 million diesel cars worldwide used the affected software.
September 25, 2015: Winterkorn resigns as CEO. Matthias Müller, the head of the company’s Porsche unit, is named as his replacement.
November 2, 2015: The EPA discovers cheating software on more cars than previously disclosed and, for the first time, also finds the illegal software in a Porsche model.
November 3, 2015: Volkswagen announces that it understated emissions of gasoline powered cars in Europe.
November 9, 2015: VWoA offers $1,000 gift cards to owners of affected diesel vehicles in the United States. Volkswagen later states that this offer does not apply to owners in the EU.
November 11, 2015: Volkswagen halts production of the 2016 diesel Passat at its Chattanooga manufacturing facility.
November 25, 2015: Volkswagen announces that a set of simple repairs could bring the affected diesel cars in to compliance with European standards.
December 10, 2015: The chairman and CEO of VW presented the results of an internal inquiry, revealing that the decision by employees to cheat on emissions tests was made in 2005.
January 10, 2016: CEO Müller claims in a radio interview that the emissions scandal was a technical issue, not an ethical concern. He changes his statement the next day.
March 2, 2016: Volkswagen reveals that former CEO Winterkorn received a memo on problems with diesel emissions in Volkswagen vehicles in May 2014, but did not indicate if Winterkorn had ever read the document.
April 22, 2016: Volkswagen agrees to fix or buyback almost all affected diesel cars in the United States.
April 24, 2016: CEO Müller personally apologizes to President Barack Obama for the emissions scandal, during a state dinner hosted by German Chancellor Angela Merkel.
May 24, 2016: Volkswagen claims that the U.S. Government has no jurisdiction over the emissions scandal. The company will continue its own internal investigation.

Questions for Discussion

1. Consider the corporate culture of Volkswagen in Germany. How did it affect this situation?
2. Why did Volkswagen engineers decide to cheat the emissions tests? Should the engineers have consulted with executives?
3. What is your assessment of VW’s sense of business ethics and fair play as manifested in the emissions cheating scandal?
4. VW has always been perceived to be a socially responsible corporation. In light of this, how could an emissions cheating scandal like this occur?
5. What roles should government regulators play in terms of emissions and fuel economy testing?
6. Assume that you are a consumer who purchased one of the affected diesel vehicles in 2014, before the EPA made its announcement. What might your reaction have been? What forms of restitution would you have sought from VWoA and Volkswagen?
7. Do research into what has taken place in the VW case since the end of this case. Are circumstances looking better or worse for the company?

BLCN532 Lab 1
Set up your development environment
V2.0

Introduction

This course introduces students to blockchain development for enterprise environments. Before you can develop software applications, you need to ensue your development environment is in place. That means you’ll need all the tools and infrastructure installed and configured to support enterprise blockchain software development projects.
In this lab you’ll set up your own Hyperledger Fabric development environment and install the course software from the textbook. When you finish this lab, you’ll have a working development environment and will be ready to start running and modifying blockchain applications.
The instructions in your textbook are for Mac and Linux computers. However, there is no guarantee that your installation of MacOS or Linux is completely compatible with the environment in which the commands from the textbook work properly. For that reason, I STRONGLY SUGGEST that you acquire an Ubuntu 16.04 Virtual Machine (VM) for your labs. Using an Ubuntu 16.04 VM will make the labs far easier to complete.
The instructions in this course’s labs assume that your computer runs the Windows operating system. If you run MacOS or Linux, you can get Vagrant and VirtualBox for those operating systems and follow the gist of the “Initial setup for Windows computers”.

Lab Deliverables:

To complete this lab, you must create a Lab Report file and submit the file in iLearn. The Lab Report file must be a Microsoft Word format (.docx), and have the filename with the following format:
BLCN532_SECTION_STUDENTID_LASTNAME_FIRSTNAME_Lab01.docx
· SECTION is the section number of your current course (2 digits)
· STUDENTID is your student ID number (with leading zeros)
· LASTNAME is your last name, FIRSTNAME is your first name
To get started, create a Microsoft Word document (.docx) with the correct filename for this lab. You’ll be asked to enter text and paste screenshots into the lab report file.
NOTE: All screenshots MUST be readable. Use the Ubuntu Screen Capture utility (see the lab video.) Make sure that you label each screenshot (i.e. Step 2.1.3) and provide screenshots in order. For commands that produce lots of output, I only want to see the last full screen when the command finishes. Provide FULL screenshots, NOT cropped images.

SECTION 1: Initial setup for Windows computers (Chapter 3)

Step 1.1: Install Oracle Virtualbox (Windows, Linux, MacOS)

Oracle Virtualbox is an open source virtualization environment that allows you to run multiple virtual machines and containers on a single personal computer. Virtualbox is free and it is easy to install.
In your favorite web browser, navigate to: https://www.virtualbox.org/ and click the “Download Virtualbox” button. Click the “Windows hosts” link to download the main installation executable. You should also click the “All supported platforms” under the “Extension Pack” heading to download extra software support for devices.
After you download the two files, double click each one to run the install procedure.

Step 1.2: Install Vagrant (Windows, Linux, MacOS)

Vagrant is a free virtual environment management utility. It makes the process of starting, stopping, and managing virtual machines easier. In your web browser, navigate to https://www.vagrantup.com/ then click the “Download” button, and click the version of the Windows executable you’d like to install. (Most of you should select the “64-bit” version.)
Once you download the install program, double-click the file you just downloaded to install Vagrant.
If you want more information on Vagrant and tips on getting the most out of the software, navigate to:
https://www.sitepoint.com/getting-started-vagrant-windows/ .

Step 1.3: Set up your Vagrant project

After installing all the pre-requisite pieces, you need to set up your Vagrant project. A Vagrant project defines your virtual machine environment and helps you organize your collection of VMs into a group that is easy to manage.
We’ll use the Windows PowerShell as our Windows command prompt environment. PowerShell is a very powerful command line interface that is available on all Windows computers.
To launch PowerShell, click the Windows key, type PowerShell, then click the Windows PowerShell menu entry. The figure below shows a portion of the Windows PowerShell command prompt window.
 
PowerShell uses your user’s home directory as its starting directory. In my case, C:\Users\micha is my home directory. For the rest of the lab, I’ll refer to this a %HOME%. Your %HOME% will be different.

1.3.1: Remove existing Vagrant projects

Follow these steps ONLY if you already have a previous Vagrant project you want to remove: (Assume the project you want to remove is located in the %HOME%\vagrant\Hyperledger directory.)
If you DO NOT have an existing Vagrant project that you need to remove, skip to section 1.3.2.
1. PS %HOME%\vagrant\Hyperledger> vagrant global-status
Note the id of the listed VM(s). You’ll use this id in the next command, in place of xxxxxxx.
2. PS %HOME%\vagrant\\Hyperledger> vagrant destroy xxxxxxx
3. PS %HOME%\vagrant\\Hyperledger> vagrant box remove ubuntu/xenial64

1.3.2: Create a new Vagrant project for Hyperledger

Launch PowerShell and enter the following commands: (Don’t type ‘PS %HOME%>’, that’s just the PowerShell prompt. Just type the characters in bold.)
1. PS %HOME%> mkdir vagrant
2. PS %HOME%> cd vagrant
3. PS %HOME%\vagrant> mkdir Hyperledger
4. PS %HOME%\vagrant> cd Hyperledger
5. PS %HOME%\vagrant\Hyperledger> vagrant init kelly219design/ubuntu-xenial-16.04-gui-desktop-base
Make sure that you enter the line above as ONE LINE at the PowerShell prompt 
6. Go to the Blackboard site (ucumberlands.blackcoard.com) and login.
7. Navigate to this course (BLCN532) -> Content for this week, Lab01.
a. Download the Vagrantfile file and copy it to the %HOME%\vagrant\Hyperledger directory. (This will overwrite the Vagrantfile that was already there.)
8. PS %HOME%\vagrant\Hyperledger> vagrant up
NOTE: To stop your VM type vagrant halt in PowerShell

Section 2: Install Pre-requisites (Chapter 3)

Once you have an operating Linux VM, you can start to install the Hyperledger Fabric pre-requisites. In this section you’ll install all the software and configuration pieces necessary to run the class enterprise blockchain application in Hyperledger Fabric.

Step 2.1: Install pre-reqs

2.1.1: Install dev tools

1. If you haven’t started your VM, do the following:
a. Open Windows PowerShell, then navigate to your Hyperledger project directory.
b. PS %HOME%\vagrant\Hyperledger> vagrant up
2. Login to your VM using the username: vagrant and password: vagrant
3. Click “Search your computer” (upper left corner icon), then type terminal.
4. Click on the Terminal icon to launch a terminal with a shell prompt.
You type all the following commands in your Linux VM (at the Terminal command prompt.)
Don’t type the ‘$’ character. That is the prompt character of a regular user to remind you that this is a command you should enter in Linux. When you see a ‘#’ character, that indicates you are in an elevated privilege shell. And the ‘>’ character indicates you’re in PowerShell. Pay attention to the prompt characters – they give you valuable information about your current context.
5. $ sudo apt-get update
6. $ sudo apt-get install libltdl-dev

2.1.2: Install Docker-CE

You can find complete Docker-CE instructions/docs at: https://docs.docker.com/install/linux/docker-ce/ubuntu/
1. $ curl -fsSL https://download.docker.com/linux/ubuntu/gpg | sudo apt-key add –
2. $ sudo add-apt-repository “deb [arch=amd64] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable”
Make sure that you enter the line above as ONE LINE in Linux 
3. $ sudo apt-get update
4. $ sudo apt-get install docker-ce docker-ce-cli containerd.io

2.1.3: Install Docker compose

1. $ sudo curl -L “https://github.com/docker/compose/releases/download/1.23.2/docker-compose-$(uname -s)-$(uname -m)” -o /usr/local/bin/docker-compose
2. $ sudo chmod +x /usr/local/bin/docker-compose
3. $ docker-compose version
4. $ date
5. Create a screenshot of the results of steps 1 – 4 and paste it into your Lab Report File.

2.1.4: Install business network pre-reqs

1. $ curl -O https://hyperledger.github.io/composer/latest/prereqs-ubuntu.sh
2. $ chmod u+x prereqs-ubuntu.sh
3. $ ./prereqs-ubuntu.sh
4. $ date
5. Create a screenshot of the results of steps 1 – 4 and paste it into your Lab Report File.
>>> Logout (use the gear icon in the upper right corner) and log back in before continuing.

2.1.5: Install GO language

The next step is to install the GO programming language. You’ll use GO to write and modify source code files for the class blockchain application.
1. $ sudo apt-get update
2. $ wget https://dl.google.com/go/go1.12.1.linux-amd64.tar.gz
3. $ tar xvf go1.12.1.linux-amd64.tar.gz
4. $ nano ~/.profile
5. In the nano editor, add the following 2 lines after the last line in the file:
export GOPATH=$HOME/go
export PATH=$PATH:$GOPATH/bin
6. Save your file and exit nano
7. $ source .profile
8. $ go version
9. $ date
10. Create a screenshot of the results of steps 1 – 9 and paste it into your Lab Report File.

Step 2.2: Install source code and set up business network

In this step you download and install the class application source code and set up the business network.

2.2.1: Forking and Cloning the trade-finance-logistics repository

1. In a browser (in Windows) go to: https://github.com/HyperledgerHandsOn/trade-finance-logistics
2. Sign up or log in
3. Click Fork
You type all the following commands in your Linux VM (at the command prompt.)
4. $ cd $GOPATH/src
5. $ git clone https://github.com/YOUR_GIT_ID/trade-finance-logistics.git
6. $ cd $GOPATH/src
7. $ mkdir -p github.com/hyperledger
8. $ cd github.com/hyperledger
9. $ git clone https://github.com/hyperledger/fabric.git -b release-1.1
10. $ cd fabric
11. EDIT FILES *****
a. $ nano Makefile
b. Find the line starts with CHAINTOOL_RELEASE (hint: use CTRL W to search)
c. Change the line you just found to this: CHAINTOOL_RELEASE=1.1.3
d. Find the line that starts with CHAINTOOL_URL (hint: use CRTL W to search)
e. Change the line you just found to this: CHAINTOOL_URL ?= https://hyperledger.jfrog.io/hyperledger/fabric-maven/org/hyperledger/fabric-chaintool/$(CHAINTOOL_RELEASE)/fabric-chaintool-$(CHAINTOOL_RELEASE).jar
NOTE: The line above should be on a SINGLE LONG LINE (don’t break up the line into multiple lines)
f. Save the file (hint: use CRTL O to write the file)
g. Exit the nano editor (hint: use CTRL X to exit)
h. $ nano images/javaenv/Dockerfile.in
i. Find the line that starts with && curl -fsSL https://nexus.hyperledger.org
j. Change the line you just found to this: && curl -fsSL https://repo1.maven.org/maven2/org/apache/maven/apache-maven/$MAVEN_VERSION/apache-maven-$MAVEN_VERSION-bin.tar.gz \
NOTE: The line above should be on a SINGLE LONG LINE (don’t break up the line into multiple lines)
k. Save the file (hint: use CRTL O to write the file)
l. Exit the nano editor (hint: use CTRL X to exit)
12. $ make docker
13. $ make configtxgen cryptogen
14. $ git clone https://github.com/hyperledger/fabric-ca.git
15. $ cd fabric-ca
16. $ make docker
17. $ date
18. Create a screenshot of the results of steps 1 – 17 and paste it into your Lab Report File.

2.2.2: Generate network cryptographic material

1. $ cd $GOPATH/src/trade-finance-logistics/network
2. $ nano ~/.profile
change last line to this (all on 1 line, not 2):
export PATH=$PATH:$GOPATH/bin:$GOPATH/src/github.com/hyperledger/fabric/build/bin:$GOPATH/src/github.com/hyperledger/fabric/build/docker/bin
3. Save file and exit nano
4. $ source ~/.profile
5. $ cryptogen generate –config=./crypto-config.yaml
6. $ date
7. Create a screenshot of the results of steps 1 – 6 and paste it into your Lab Report File.

2.2.3: Generate channel artifacts

1. $ cd $GOPATH/src/trade-finance-logistics/network
2. Execute the follow commands OR run the trade.sh script (AFTER step 9)
3. $ mkdir -p channel-artifacts
4. $ configtxgen -profile FourOrgsTradeOrdererGenesis -outputBlock ./channel-artifacts/genesis.block
5. $ configtxgen -profile FourOrgsTradeChannel -outputCreateChannelTx ./channel-artifacts/channel.tx -channelID tradechannel
6. $ configtxgen -profile FourOrgsTradeChannel -outputAnchorPeersUpdate ./channel-artifacts/ExporterOrgMSPanchors.tx -channelID tradechannel -asOrg ExporterOrgMSP
7. $ configtxgen -profile FourOrgsTradeChannel -outputAnchorPeersUpdate ./channel-artifacts/ImporterOrgMSPanchors.tx -channelID tradechannel -asOrg ImporterOrgMSP
8. $ configtxgen -profile FourOrgsTradeChannel -outputAnchorPeersUpdate ./channel-artifacts/CarrierOrgMSPanchors.tx -channelID tradechannel -asOrg CarrierOrgMSP
9. $ configtxgen -profile FourOrgsTradeChannel -outputAnchorPeersUpdate ./channel-artifacts/RegulatorOrgMSPanchors.tx -channelID tradechannel -asOrg RegulatorOrgMSP
OR (Instead of typing the commands above, the author provides a script to do it all)
1. $ ./trade.sh generate -c tradechannel
Troubleshooting help:
· If you encounter problems with your blockchain network in this lab or future labs, the ./trade.sh script may help you resolve them. If you are getting errors when trying to launch or interact with your network, try these commands at the Ubuntu command prompt:
o ./trade.sh down # If your network is up and running
o ./trade.sh clean
o ./trade.sh generate -c tradechannel 
o ./trade.sh up

2.2.4: Launch the sample trade network

There are two ways to launch the sample trade network, using the docker-compose command directly, or by using the author-supplied trade.sh shell script. We’ll use the shell script in most of our activities.
1. $ cd $GOPATH/src/trade-finance-logistics/network
2. $ ./trade.sh up
3. $ date
4. Create a screenshot of the results of steps 1 – 3 and paste it into your Lab Report File.

Step 2.3: Verifying your business network

The last step in this lab is to verify that your business network is up and running.
1. Open a new terminal window in your Vagrant Hyperledger VM. Click “Search your computer” (upper left corner icon), then type terminal, then click the Terminal icon.)
2. Enter the following command:
3. $ docker ps -a
4. $ date
5. Create a screenshot of the results of steps 2 – 4 and paste it into your Lab Report File.
6. The first column in the previous output is the “container-ID”. Find the container-ID for the orderer process, and use it for the following command: (Don’t type the “<” or “>” characters)
7. $ docker logs <container-ID>
8. Create a screenshot of the results of step 7 and paste that screenshot into your Lab Report File.

Section 3: Wrapping up

Once you have your network up and running, the only step to complete is to learn how to properly shutdown your business network.
1. Shut down the business network in Linux:
2. $ ./trade.sh down
3. Exit from your Linux Terminal command prompt(s) (i.e. close any open Terminal windows.)
4. $ exit
5. In Windows PowerShell, shut down your Hyperledger virtual machine:
9.  PS %HOME%\vagrant\Hyperledger> vagrant halt
10. Create a snapshot (NOT A SCREENSHOT) of your Ubuntu VM in VirtualBox. This allows you to easily restore to this point if you ever need to “undo” subsequent steps and return to a known point.
a. PS %HOME%\vagrant\Hyperledger> vagrant snapshot EndOfLab01
You should have 8 screenshots in your Lab Report File. Save your file and submit it in iLearn as a file attachment for the Lab 1 assignment.
Congratulations! You have complete lab 1.

One of the hardest tasks you may face in Web Analytics is to convince persons outside of your team or department of the importance of the reports and KPI’s that tell the story of how well or bad you are doing with your website. Communicating your information effectively to Management and the Board of Directors, whom we will call the stakeholders, can be a daunting task, they just do not have the time to understand the details of the reports you offer. Therefore, to communicate your information, you will have to learn how to summarize and format your reports in abridged versions.
Please explain the following:
300 Words Minimum
Explain what KPIs are they designed to accomplish.
Describe how to prepare a KPI.
Explain how you would present your KPI to the Stakeholders, in brief.