Capello took over the reins of the Three Lions following the ill-fated Steve McClaren era, which saw England fail to qualify for Euro 2008.
The Italian has had no such problems in gaining qualification to the World Cup in South Africa, with the former AC Milan coach winning nine out of 10 games en route to the showpiece.
Terry believes the transformation is down to the methods of the 63-year-old, who has developed a fearsome reputation with his emphasis on discipline and rigorous training methods.
While the former skipper was cautious about overplaying expectations ahead of their Group C opener against the USA , he said his team were more tactically capable of implementing their manager's nous during the tournament.
Terry said: "He's been great, his experience has shown. He's made some changes late in games to alter tactics, our formation or shape and the way we play.
"We have that variety now where we can chop and change in mid-game as well as having his input at half-time and on the training field.
"He's really impressed myself and the others with training techniques and his ideas and it's all been good since he's been here.
"So, of course, he can be the difference in right moments. I don't think anyone has come right out and said 'We're going to win the World Cup'. But we have a good chance.
"We have a good game plan. Maybe where we've gone wrong in the past is players coming out and saying we can do this, we can do that. This time it's down to us to show it as the tournament progresses."