A typical car on the street uses a narrow band O2 and that is used to adjust the air/fuel ratio basically during part-throttle cruising or light acceleration. There are many other times the system is running open-loop. The closed loop has operation limits to which it can successfully work. So, after engine modifications, both the closed and open loop operation often needs to be tuned.
If you had an LSx engine then this would be a good place to go.
Not sure if their info is any help for other makes or models.
The first thing to realize is that a factory engine with a factory PCM is well tuned for the vehicle. However, there is much more to tuning than just changing the fuel and timing.
On drive-by-wire throttle cars you can sometimes change the pedal to actual throttle opening response.
On automatic cars you can change the transmission shift points and converter lock-up points.
On a car like yours with a turbo, you might be able to increase the boost and fuel a bit and extract a little extra power.
On all cars you can do things like change the electric fan set-points or other simple operational things. For example, my LS1 doesn't go to high fan speed until I believe 236 degrees and many people turn down that fan temperature setting by 10 to 20 degrees. The car does get to be very hot with the factory setting, and not just the engine but the radiated heat makes the interior hot too.
And then, beyond these personalizations to a factory car, almost any modifications done require the ECM to be adjusted for the changes.
I have tuned a few different GM engines, using both eproms and flash based computers but I have yet to do anything that was ODB2 - 1996 or newer. I have not got into tuning my LS1 yet but I am thinking about trying it next.
Now, after posting all this I will post one more thing. If you have no clue about this then you have a lot of learning to do. I spent many hours reading and looking at the software and the engine tables to figure out what was going on. Some time driving around watching the engine data helps too (but is not real safe). There used to be a DIY-EFI website with lots of good info but I think it's mostly dead now. Not sure but the Megasquirt website might have some good info on how the system works. In the end, the different make ECM's may appear to work differently but they all do basically the same thing (control the fuel and timing of an engine and sometimes the air too).