Josh, it's been years sinced I messed with bike engines...
The power output depends on the volume of air/fuel mixture you can squeeze into the cylinder when the bang! happens If you increase the volume by, for instance, fitting a super duper carb and improving the "breathing" you may then need to adjust the spark timing to get best advantage of the extra power available. With extra umph in the cylinder there will be more exhaust gasses so a fancy pipe will be needed.
As you increase the power more heat will be developed in the engine and more wear on the moving parts - dangers arise from the piston burning a hole and the big and little bearings being over stressed.
High performance engines need lots of maintenance because of these extra stresses. You bike is probably not up to being turned into a rocket without major engineering re-work on the internals of the engine.
I would guess that your best route to improving performance will be carb related - I know so little about modern engines I can't comment on how the spark is produced - car engines seem to be governed by a computer these days and improved software is usuallly needed to boost performance by adjusting fuel/air mixture and spark timing.
If I were you I would live with what I have and save my pennies for a better bike - you could spen lots of dosh and take lots of hours to get a poor return for your efforts...
Continuing good luck
P
July 2009