Williams have not tasted glory since claiming both the constructors' and drivers' crowns in 1997 - the latter coming courtesy of Jacques Villeneuve.
However, they have been impressive during the 2014 season, currently sitting fourth in the standings, and head of vehicle performance Smedley believes the team's current supply deal with Mercedes can enhance their prospects.
"This team has to have ambitions to win the world championship," he told Autosport. "Yes, we are not a works team, but are Red Bull really a works team? Mercedes are a works team and Ferrari are definitely a works team because they work under the same roof.
"But if you look at the differing fortunes of those teams, does being a works team give you automatic access to winning races and championships? I don't think so.
"The ambition of this team has to be to win world championships and to get back to how it was.
"We should not be setting ourselves to be best of the rest because if we want to do that, we have already achieved that ambition, so now we have to go on and win world championships."
Williams' last race victory came at the 2012 Spanish Grand Prix, with Pastor Maldonado topping the podium.
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