Ulster scored a narrow win over Edinburgh in a pre-season fixture last weekend and will host Ospreys on Friday [19:45 BST] in their final warm-up game before the United Rugby Championship [URC] begins at home to Edinburgh on 25 September.
Although Ulster had a disappointing finish to last season with defeat by Montpellier in the Challenge Cup final and a ninth-place finish in the URC seeing them miss out on the playoffs and a place in the Champions Cup, Dermody feels "the building blocks are there" to push on.
"While it was a tough end to the season, being able to put yourself in a final has to be commended," he added.
"I think there's enough excitement around that to kick-start the season.
"We aren't going to win every game, but there are a lot of games that were close enough to grab a few points that would have made the standing in the table at the end of the season different. "
Dermody, who faced Ulster during his playing days with London Irish, recalls an "extremely hard team to beat" and feels getting it right in the forwards is crucial to compliment their attacking play.
"The style of play has changed a wee bit, but I think it would be remiss to overlook the need to express that physicality in the forwards," he continued.
"If you're in most games and the opposition walk off feeling that, you're in a good place. "
