Roberto Mancini's team wrestled the Premier League crown from their neighbours Manchester United courtesy of Sergio Aguero's 93rd-minute winner against QPR at the Etihad Stadium on the final day of last season.
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"We need to go further and win the Champions League to get the respect of other clubs," the midfielder told reporters. "We need to win a couple of cups.
"It will be tough but I have a lot of confidence in the squad. We were missing the experience last time in the Champions League. Now we have some of that experience and the right mentality.
"The Champions League is not like other competitions, as you have those three games at home and three away.
"You have to make sure you win your home games and get a couple of points away."
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"Last year we had 10 points [in the group stage], which would normally take you to the second round," said the former Barca man. "But I hope this season will be different as the lads are already excited to start the Champions League.
"You look at our rivals - Chelsea and United have both appeared in the final, so I hope this year we can go far, and even win it."