Watson, who missed most part of the fifth edition of IPL last year, will be seen in Royals' colours for all matches barring the first one against Kolkata Knight Riders on April 8 in Jaipur.
Speaking to "The Times of India" newspaper, Dravid said if they play to their full potential, they should do well.
"I am quite happy with the team we have this time. We needed to get certain kind of players to fill up some slots and we have been able to do that. This time, we will also have Shane Watson with us from the second game onwards. That is a great advantage. Watson brings a lot of quality to the team. Last year, we missed him for the first 8-9 games. This time, we are lucky that way. If we can play to our potential, we should be able to do pretty well," Dravid told the newspaper.
When asked whether he would play all matches, the former India captain said that is the plan as of now. He also hinted that Watson might open the batting.
"Yes, that is the idea (playing all games). I am ready to play all the matches, but then we will take a call as the tournament progresses. I have been playing some cricket for the past two months. I have been at the nets and am also working on my fitness. I might open the innings with Ajinkya Rahane, but this time we have an option in Watson too. He can give us a great start," he added.
Royals won the inaugural edition of IPL in 2008 under Shane Warne's captaincy.