Brendan Rodgers' number two at Parkhead says the club need to win every game next season.
Davies has moved to Parkhead to take up a familiar role in the coaching staff of new Hoops boss Rodgers, having previously worked with the manager at Swansea City and Liverpool.
Together, the pair will attempt to maintain Celtic's dominance over Scottish football in the face of the challenge of the return of arch-rivals Rangers to the top flight after a four-year absence next term.
Davies is under no illusions as to the huge responsibility he and Rodgers have taken on, telling reporters via the official website: "We know that this is one of the biggest clubs in the world. We know that we need to win every game. We know the expectancy here.
"Straight away you notice the size of Celtic, you know from the outside how big it is. Especially at the unveiling here a couple of weeks ago, it was sensational. It’s a great honour to be here."
Davies began his career as captain of the Reading academy team in the early 2000s, which was at the time coached by Rodgers, and later followed his mentor from club to club as right-hand man.
The 31-year-old, who was first team coach at the Royals before being brought to Glasgow, believes that he shares Rodgers' clear footballing philosophy, and outlined what his personal coaching role will be on the training ground and in the dressing room.
Davies added: "I think we, as a staff, bring a lot of experience to the top level of the game. We’ve got a very clear way in how we want to play and we’ll implement that at this club as well.
"Personally I have a really big interest in the tactical side of the game and looking at the strategy of the game is something I really enjoy. Working with players on the field, communicating with players and trying to help them improve as a team and as individuals is where my strength lies."
Celtic fans will be hoping that the partnership which proved so fruitful in the past, particularly at Swansea, will reap reward next season as they look to move on from the underwhelming era of Ronny Deila.