The purpose of this paper is to show what the business information system is and what are the types of business information systems. The goal is to explain the term system, information system and business information system in order to understand the meaning of these terms and their purpose of existence. Why is the business information system so important to organizations, how they are used and what are the benefits for organization. What is its structure, development and life cycle and why the information system is so important for business. It will be explained what is the data and what is the information so that we know the difference between these two terms. Information is everywhere, we just need to know how to discern and reach them. They are necessary and irreplaceable in every area of life. Data and information are multiplying very quickly and the man is the one who needs to know how to best use them for the overall progress and well of every individual. The information system is part of a very complex social system and it is not easy to determine it. The information system is part of every system in which we are interested in information and their transformation. Information should be used as a tool for easier, better and more successful action in all areas of human interest. There are numerous definitions of the information system in a business organization, how it is created and how it is used, we will discuss this more detail in the paper.