And despite being drawn in the same pool as Heineken Cup holders RC Toulon, Davies believes the Blues should be optimistic ahead of their opening trip to Exeter a week on Sunday.
"We've got to be as excited as we were last year to go into a pool that we have some great opportunities in," said Davies, whose team will also face PRO12 table toppers Glasgow in Pool 2.
"The competition is fantastic: it's the Champions League of Rugby. Our pool is quite tough and there are big, physical packs in all the teams.
"It's about momentum. You'd love to win every single game, as we did when I was at the Scarlets a few years ago, but it's about momentum at critical points and that starts at Exeter.
"It will give us great confidence if we can get some momentum in the next couple of games by picking up some points and some wins. We can then go from there.
"We had two great games against Toulon last year with two very creditable performances. You could argue that we could have won at home, but we didn't and we've got understand why."
The Blues welcomed back British & Irish Lions skipper Sam Warburton for the domestic trip to Dublin, with the star openside having recovered from the hamstring injury that ruled him out of the Lions' series decider in Sydney.
Warburton showed glimpses of his best form at the RDS as he lined up alongside fellow Lions Alex Cuthbert, Leigh Halfpenny and Gethin Jenkins.
His presence against the Chiefs at Sandy Park on October 13 will be a huge boost for the Blues as Davies looks to guide a young squad towards a first quarter-final showing since 2009.
"It's important that the whole team is firing and it was great to have Sam back on Friday," added Davies.
"The one thing we need is to grow as a group together. We haven't had a lot of big-time experiences together as a group. Lots of our individual players have had those big experiences but the important thing is how we perform as a unit.
"The team performed really well against Leinster on Friday. We had a great level of intensity and physicality about us, which we'll need in the Heineken Cup. We just need to be a little bit more clinical and take the opportunities that we're undoubtedly creating on a regular basis.
"That's the encouraging thing for us: we've got good physicality and we're creating chances. The next stage is being more consistent in terms of finishing those chances off. If we can do that, we'll be a handful."