Dr Berman will elaborate on a methodology to analyze, design, implement and test navigation systems, based on Kalman filters. This methodology is founded on an effective system-parameterization, analysis and design tool based on truth covariance analysis. The primary goal is to design and implement high-performance, high- quality navigation systems using an effective development scheme. Surprisingly, once the framework was for- mulated and applied, additional possibilities appeared. The first is an automated process for a reduced-order Kalman filter design. The second was the idea of self-designing systems. In such set-up, the customer gains the capability to modify the design for improved matching to his or her specific applications and requirements. The lecture addresses all phases of navigation system design: from model-based analysis and design to actual sys- tem implementation, testing and verification. All phases are described in an evolving development process: supervison by human experts, automated design and the implementation of the self-designing system.