To monitor network operation in real-time, power system operators have developed wide-area monitoring systems (WAMS). However, the centralized communication and information processing architecture of WAMS cannot be extended easily to distribution networks. In this aspect, a three-level distributed network monitoring architecture is proposed in this paper, concerning the dynamic analysis of transmission, primary and secondary distribution networks by exploiting measurements of ambient data and transient responses. In the proposed architecture, operators are responsible for the operation and analysis of their own grid but also can share an overview of the system performance to facilitate their operational coordination. Different online and offline applications are supported within the architecture, including small-signal, transient and frequency stability analysis as well as dynamic equivalencing and real-time inertia estimation. Measurement-based algorithms and models are proposed for each case. Finally, the performance of the developed algorithms has been tested by using a combined transmission and distribution power system model.