The former Porto man saw his team slump to their second loss in as many games, however, the Portuguese boss believes every game is a learning curve, despite the result
A sublime hat-trick from Gunners striker Robin van Persie helped the north London outfit to take the spoils at Stamford Bridge on Saturday, despite the Blues taking the lead twice as they slumped to their second defeat in a row after previously losing to QPR.
The Portuguese manager concedes the Arsenal defeat was hard to take, but says no matter the result, every game helps build experience.
"There's always a learning curve, whether you are winning or losing," said Villas-Boas.
"You have to be frank and say that our progress was stopped in a disastrous week. But you cannot say it's all gone to ruins. That's not true. It doesn't mean our castle went down.
"There were, of course, back to back defeats in the Premier League, which take their toll in terms of the table, but that doesn't mean that what's being built is wrong, that the philosophy is wrong, and that we're not on the right track.
"We are on the right track."
Chelsea play Genk in the Champions League on Tuesday night and Villas-Boas insists it is a chance the Blues must take in getting back on track and to restore their reputation.
"We have been punished in the last week but it's up to us to take on the challenge. We represent a massive club and we're not running away from the mistakes, but we have to move on.
"All of us know our defensive responsibilities. We were one of the three best defences in the Premier League before the Arsenal game.
"We were on the right progress up to then. Then we had a very bad week but now we have to recover and get back on the right track.
"It happened to Arsenal. They're recovering now after a good learning process. Hopefully, we can do exactly the same. We have the talent, the experience and the ability to do so."