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 a Digital Elevation Model (DEM). Our approach is innovative in three ways. First, we propose 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. Secondly, we propose a system that is designed to minimize human interaction and manual data entry. Thirdly, and possibly the most important part of this innovation, is that we propose both the implementation of multiple algorithms to perform the data processing, as well as an extensible software architecture which allows new algorithms to be incorporated into the system in the future. This approach allows for the development of a dynamic system which can be extended in the future as better algorithms are developed. 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). Current approaches to this problem only solve parts of the problem and do not provide an integrated system for end-to-end processing.