England produced one of the great Twickenham performances to beat the world champions by a record 38-21 scoreline and end the All Blacks' 20-Test unbeaten streak.
Only once in 498 Tests had New Zealand been beaten by more. England's previous best victory over the All Blacks was 13-0 in 1936.
New Zealand, South Africa, Australia and France are the top seeds in tomorrow's draw - and Woodward thinks none of them will want to be grouped with 2015 tournament hosts England.
"It was a great, great victory for the English team," Woodward told Sportsweek on Radio Five Live.
"The scoreline absolutely reflected the performance and it was a great, great day to be at Twickenham.
"They have some great players in there - Joe Launchbury, Tom Wood, Chris Robshaw - who were world class yesterday.
"They had lost the previous two. This was a real David and Goliath effort. They came out and threw the kitchen sink and New Zealand got completely rattled. Every phase of the game they won.
"It makes the draw fascinating given England have just demolished New Zealand.
"The top four sides will not want to be playing against England.
"The draw is really important because it shows which way you go through the quarter-finals, semi-finals.
"That one result yesterday will make the southern hemisphere teams sit up and say for once 'we want to keep away from England'."
Woodward also believes England's victory was significant for the whole of northern hemisphere rugby. France beat Australia and Ireland beat Argentina but otherwise the autumn was a disappointment for the Six Nations teams.
"If England had not won yesterday, the Six Nations would have been a second division competition but because of what England did, and to some extent Ireland beating Argentina comfortably, it just sets the Six Nations up absolutely huge.
"It also sets the Lions year up really, really well now."
Lancaster's pride in his team was clear and he was delighted England proved what they were capable of and, crucially with 2015 in mind, gave an indication of what they could become.
"Our belief in the direction we are on hasn't wavered over the last four weeks. We nearly got across the line against Australia and South Africa but just missed out," Lancaster said.
"We copped for a bit but stayed tight and we put in a performance we can all be proud of.
"It was less than 11 months ago we changed the direction of travel for England rugby, to build a team for the future but also wanting to win in the here and now.
"Sometimes it takes a win to show that and the most pleasing thing is it has given a clear view of the direction we are going."
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The Barbarians are one of the top invitational rugby sides with a long history and classic rugby jersey.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Lions get ready for their matches with this green training jersey. It's what the players wear. Get in the Gear!
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
$29.99
The Lions are ready to get their Australia tour underway. They arrive in Perth on Monday.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.
