Diamond Data Systems (DDS) proposes the development of a new advanced architecture, algorithms and software to support the end-to-end processing of LIDAR data to derive useful information products such as Digital Elevation Models (DEM). The approach is innovative in three ways. First, it proposes a complete end-to-end system instead of a solution that addresses only a single step of the complex problem of accurately gathering, processing, and reporting of the data. Second, it proposes a system that is designed to minimize human interaction and manual data entry. Third (and possibly the most important) is that it proposes both the implementation of multiple algorithms to perform the data processing, as well as an extensible, open software architecture which allows algorithms to be incorporated into the system in the future. This approach allows for the development of a dynamic system which can be extended not only by DDS, but by third parties as well. Our proposal is relevant to topic E3.03 in that it provides for the efficient production of a DEM product from an active imaging system (LIDAR).