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Intranets are, in effect, "internal websites." They are available only to your colleagues and employees, whether they are inside the same building as the intranet server, or whether they dial into your network using VPN.
VPN stands for "Virtual Private Network," and refers to an encrypted (scrambled) connection from the outside world to your computer network. It is a safe and relatively convenient way for employees to work from remote locations. "Relatively" convenient, because the encryption of the connection slows its speed.
An intranet allows you to easily manage access to resources, centralize document management, and to streamline your business processes. Optionally, your intranet can also be accessed from the outside, without VPN, using a secure connection from a simple web browser, (in which case your intranet becomes an "extranet.")
But the capabilities of your intranet are, literally, only limited by your imagination.