Davies, who has continued last season's central defensive partnership with Luke Oliver in recent matches, acknowledges that City have to make amends following their four-goal reversal at the hands of Steve Evans' Millers.
But after coming into the Rotherham match off the back of four wins from their first five games, Davies believes City's defeat at the New York Stadium shouldn't hide the fact that Phil Parkinson's men have shown plenty of encouraging signs in the early stages of the new campaign.
"We have to learn from the mistakes we made at Rotherham, clearly," said Davies.
"We know what we did wrong there and we now have to look to put things right again. It was a bad defeat for us, but we don't want to dwell on it too much because we have still had a good start to the season.
"Rotherham are a good side and have brought in some good players over the summer, but we know we have the ability to beat anyone in our division if we are on our game.
"We are full of respect for all of our opponents, but we shouldn't fear anyone we face this season.
"The lads all know that we'll be in line for a tough game at Accrington (Stanley) on Saturday, but we still have the quality within our squad to challenge for the win there.
"We'll only do that though if we get the basics right and put the hard yards in."