That is the verdict of former Aston Villa and Australia goalkeeper Mark Bosnich.
Smith was announced as Steve Bruce’s successor at Villa Park on Wednesday evening.
The 47-year-old is a boyhood Villa fan and left fellow Championship side Brentford after three years in charge.
Terry was also in the running for the job but the man who spent last season as a player at Villa will be Smith’s assistant.
The duo arrive with Villa 15th in the Championship table after just three wins from their opening 12 games of the season.
However, Bosnich sees no reason why his former side cannot mount a charge towards the top of the table and at least finish in the play offs.
“I think it’s a very good appointment,” Bosnich told talkSPORT.
“He’s got experience in the Championship. He’s not the big name up in lights in terms of some of the people who were mentioned, but I think that’s exactly what they need at this moment in time.
“I think they’re still suffering a hangover from losing that play-off game last season – they’ve just got to put that behind them.
“Yes, Aston Villa should be in the Premier League, but the bottom line is they’re not.
“They had years and years of warning that they were going to be relegated, and we spoke about continually on this show.
“But now it’s a clean sheet with the new manager and his assistant.
“John Terry knows the club from being there last season and Dean Smith will have his ideas – they just need to get promoted.
“Things aren’t going their way, but if you look at the table they’re still only four points off the play-off places.
“They weren’t far off last season, so there’s no reason why they can’t do it this season – there’s still a long way to go.”
Smith’s first game in charge will be the visit of Swansea on October 20 (3pm).
Graham Potter’s side are 11th as they look to return to the Premier League at the first time of asking.