The observer design for nonlinear multiple-output systems is shown to be co
nsiderably simplified in a decentral approach. The method requires a block-
triangular system representation which either can be detected in the system
differential equations or may be obtained by a state transformation. The t
ransformation is investigated in detail, and necessary and sufficient condi
tions for its existence are discussed. Moreover, the method is illustrated
by the ball-and-beam example.