Step one, buy a new bike.
Not that there is anything really wrong with the Katana, but it just isn't the best platform to start from for either of your goals. Get a 6R, R6, 6RR, gsxr 6, and go to the friday night drags with it bone stock. You'll be able to outrun that Katana with a 600 sportbike even if you managed to mod out the Kat.
If your going to lean towards real racing (road racing), hit up a trackday where you can borrow leathers. You could do that with your Katana now, and you'll have a BLAST.