If I have a function f and you have some data x, and you want to compute f(x), then without fully homomorphic encryption, either I have to give you my function or you have to give me your data. With fully homomorphic encryption, you can give me your encrypted data and I can use that as input to my function, so that you don't learn what my function is and I don't learn what your data is. I give you the output of the function, and you can decrypt it to learn what f(x) is without learning f.