1. A computer readable memory having code stored therein for developing and enabling model-driven eXtensible Markup Language (XML) transformation to XML Metadata Interchange (XMI) format, the code implementing the steps of: applying to input model multiple passes of transformation, comprising applying at least two passes of sequential traversals including: i) applying a first pass during which, for every object of input, is created a corresponding new object(s) of an output model, with the new objects not connected until a second pass, ii) applying the second pass and setting up links among the new objects which are output objects, with links representing parent-child and owning-owned relationships, the multiple passes resulting in Eclipse Modeling Framework (EMF) generated Java classes and utilities; providing input to an eXtensible Markup Language (XML) schema which, in turn, provides input to an XML editor which generates an observation model in XML; receiving the observation model by a model transformation component which generates an observation model in XML Metadata Interchange (XMI); whereby an in-memory model is produced that conforms to the meta-model and is valid according to built-in validation capability through code-embedded validation logic.